Volume : 5, Issue : 11, November - 2016

IMPACT OF INVENTORY MANAGEMENT ON FINANCIAL PERFORMANCE-A COMPARATIVE STUDY

K. S. Harshitha

Abstract :

<p>&nbsp;In this fast moving environment, inventory management plays an important role to excise sufficient control on the finances of the organization. For any businesses, customers are considered most important and to have a smooth flow of sales, inventory has to be maintained properly. Inventory involves in the whole process cycle of the organization as it starts with the shop floor to the top level management commitment. The purpose of this paper is to study the impact of inventory management on the financial performance of the chosen organization. Secondary data is used for a period from April 2009 to March 2015. Collected data was analyzed using ratio analysis and forecasting for 2014-15 was used using Least Square Method. Overall findings of the study reveal that both the companies had minimal impact of inventory management on current assets</p>