Inventory Management Practices and Stewardship to Shareholders of Listed Nigerian Cement Companies

Abstract

This study explored the relationship between inventory management practices and the financial performance of listed cement companies in Nigeria. Data for the analysis were obtained from the published annual reports and accounts of the sampled listed Nigerian cement companies from 2015 to 2024 (10 years). Data were analyzed using descriptive and inferential statistics (multiple regression). Inventory management practices were proxied by inventory turnover ratio (ITR), inventory holding period (IHP), inventory-to-sales ratio (ISR), and inventory-to-asset ratio (IAR). Financial metrics are proxied by Return on Assets (ROA) and Return on Equity (ROE). Inventory management practices had a positive and significant effect on ROA. Inventory management practice had a positive and significant effect on ROE. The study advised industry managers to adopt Inventory management practices that align with current technology to remain profitable. Inventory is very germane in the manufacturing industry; it should be accorded critical attention for the sustainability of business.