Volume 59, Issue 330, June 2023

Exploring inventory management’s effects on bottler’s Nepal limited (Balaju) profitability

Dhruba Lal Pandey¹, Nischal Risal², Juhi Mishra³

¹Associate Professor, Central Department of Management, Tribhuvan University, Kirtipur, Nepal
²Assistant Professor, Nepal Commerce Campus, Tribhuvan University, Kirtipur, Nepal
³Nepal Commerce Campus, Tribhuvan University, Kirtipur, Nepal

ABSTRACT

The study aims in analyzing the relationship between the inventory management and profitability of a manufacturing company Bottlers Nepal (Balaju) Limited. The study has employed a descriptive and analytical research design. The secondary data have been extracted from the year 2006 to 2018 AD. ICP, ACP, ADP, CCC, SG, CR, FS and ROA as a dependent variable have been used in the study. The data have been analyzed using SPSS Software. The descriptive analysis, correlation analysis and regression analysis have been conducted in the study. The study concluded that the inventory conversion period has a significant positive relation with ROA whereas the firm size has significant negative relation with ROA. The findings have important implications to the regulators, shareholders and consumers. It would help them to identify the key drivers to achieve consistent and better financial performance which in turn led to know varying characteristics that could affect to their returns. The further research can be done to sustain the inventory management effectively to increase their profits.

Keywords: Return on assets, Cash conversion cycle, Sales growth, Current ratio, Firms Size, JEL Classification: C00, C12, D02, G10, G31

Discovery, 2023, 59, e83d1269

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Published: June 2023