ISSN 2394-5125
 

Research Article 


EXPLORING THE CORRELATION AMONG EFFICIENCY OF INVENTORY MANAGEMENT AND PROFITABILITY: A COMPARATIVE ANALYSIS OF INDIAN TEXTILE INDUSTRY AND CONSUMER GOODS INDUSTRY

Dr. P. Vidhya Priya, Dr. P. Sundharesalingam, Dr. M.Mohanasundari, Ashitha Sidharthan.

Abstract
Inventories are indispensable for the successful operation of manufacturing firms. It forms a principal constituent of the aggregate resources of every business unit and it is based on the inventory that important decisions are made at all phases of production, delivery, and transactions. Maintaining inventory also includes certain costs like carrying or holding costs in conjunction with the opportunity cost. Consequently, it is essential that excellent inventory management be performed to make sure economic development and productivity of the organization. Given the important contribution of the Textile and Consumer Goods Industry to the Indian economy, this article evaluates the correlation among efficiency of inventory control and profitability as a relative analysis of Indian firms operating in textile and consumer goods industry between 2009 2019 years. Research data consists of debt ratio, current ratio, inventory conversion period, inventory turnover ratio, return on assets, gross profit margin, firm size calculated based on the data obtained from Prowess software. In this study, the correlation among inventory management and profitability is examined by utilizing SPSS-20 package with regression analysis, correlation and descriptive statistics. The findings from the analysis are interpreted as comparatively. It is observed that inventory conversion period has an adverse correlation with profitability ratios and inventory turnover ratio is adversely associated with the gross profit margin in textile industry. Consequently, it is established that there is a positive connection among inventory management and profitability in textile manufacturing firms. It is also found that there exists no connection among inventory management and profitability in consumer goods manufacturing firms.

Key words: Return on assets, inventory conversion period, gross profit margin, inventory turnover ratio, and correlation.


 
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How to Cite this Article
Pubmed Style

Dr. P. Vidhya Priya, Dr. P. Sundharesalingam, Dr. M.Mohanasundari, Ashitha Sidharthan. EXPLORING THE CORRELATION AMONG EFFICIENCY OF INVENTORY MANAGEMENT AND PROFITABILITY: A COMPARATIVE ANALYSIS OF INDIAN TEXTILE INDUSTRY AND CONSUMER GOODS INDUSTRY. JCR. 2020; 7(19): 4245-4257. doi:10.31838/jcr.07.19.498


Web Style

Dr. P. Vidhya Priya, Dr. P. Sundharesalingam, Dr. M.Mohanasundari, Ashitha Sidharthan. EXPLORING THE CORRELATION AMONG EFFICIENCY OF INVENTORY MANAGEMENT AND PROFITABILITY: A COMPARATIVE ANALYSIS OF INDIAN TEXTILE INDUSTRY AND CONSUMER GOODS INDUSTRY. http://www.jcreview.com/?mno=127628 [Access: September 14, 2020]. doi:10.31838/jcr.07.19.498


AMA (American Medical Association) Style

Dr. P. Vidhya Priya, Dr. P. Sundharesalingam, Dr. M.Mohanasundari, Ashitha Sidharthan. EXPLORING THE CORRELATION AMONG EFFICIENCY OF INVENTORY MANAGEMENT AND PROFITABILITY: A COMPARATIVE ANALYSIS OF INDIAN TEXTILE INDUSTRY AND CONSUMER GOODS INDUSTRY. JCR. 2020; 7(19): 4245-4257. doi:10.31838/jcr.07.19.498



Vancouver/ICMJE Style

Dr. P. Vidhya Priya, Dr. P. Sundharesalingam, Dr. M.Mohanasundari, Ashitha Sidharthan. EXPLORING THE CORRELATION AMONG EFFICIENCY OF INVENTORY MANAGEMENT AND PROFITABILITY: A COMPARATIVE ANALYSIS OF INDIAN TEXTILE INDUSTRY AND CONSUMER GOODS INDUSTRY. JCR. (2020), [cited September 14, 2020]; 7(19): 4245-4257. doi:10.31838/jcr.07.19.498



Harvard Style

Dr. P. Vidhya Priya, Dr. P. Sundharesalingam, Dr. M.Mohanasundari, Ashitha Sidharthan (2020) EXPLORING THE CORRELATION AMONG EFFICIENCY OF INVENTORY MANAGEMENT AND PROFITABILITY: A COMPARATIVE ANALYSIS OF INDIAN TEXTILE INDUSTRY AND CONSUMER GOODS INDUSTRY. JCR, 7 (19), 4245-4257. doi:10.31838/jcr.07.19.498



Turabian Style

Dr. P. Vidhya Priya, Dr. P. Sundharesalingam, Dr. M.Mohanasundari, Ashitha Sidharthan. 2020. EXPLORING THE CORRELATION AMONG EFFICIENCY OF INVENTORY MANAGEMENT AND PROFITABILITY: A COMPARATIVE ANALYSIS OF INDIAN TEXTILE INDUSTRY AND CONSUMER GOODS INDUSTRY. Journal of Critical Reviews, 7 (19), 4245-4257. doi:10.31838/jcr.07.19.498



Chicago Style

Dr. P. Vidhya Priya, Dr. P. Sundharesalingam, Dr. M.Mohanasundari, Ashitha Sidharthan. "EXPLORING THE CORRELATION AMONG EFFICIENCY OF INVENTORY MANAGEMENT AND PROFITABILITY: A COMPARATIVE ANALYSIS OF INDIAN TEXTILE INDUSTRY AND CONSUMER GOODS INDUSTRY." Journal of Critical Reviews 7 (2020), 4245-4257. doi:10.31838/jcr.07.19.498



MLA (The Modern Language Association) Style

Dr. P. Vidhya Priya, Dr. P. Sundharesalingam, Dr. M.Mohanasundari, Ashitha Sidharthan. "EXPLORING THE CORRELATION AMONG EFFICIENCY OF INVENTORY MANAGEMENT AND PROFITABILITY: A COMPARATIVE ANALYSIS OF INDIAN TEXTILE INDUSTRY AND CONSUMER GOODS INDUSTRY." Journal of Critical Reviews 7.19 (2020), 4245-4257. Print. doi:10.31838/jcr.07.19.498



APA (American Psychological Association) Style

Dr. P. Vidhya Priya, Dr. P. Sundharesalingam, Dr. M.Mohanasundari, Ashitha Sidharthan (2020) EXPLORING THE CORRELATION AMONG EFFICIENCY OF INVENTORY MANAGEMENT AND PROFITABILITY: A COMPARATIVE ANALYSIS OF INDIAN TEXTILE INDUSTRY AND CONSUMER GOODS INDUSTRY. Journal of Critical Reviews, 7 (19), 4245-4257. doi:10.31838/jcr.07.19.498