EFFECT OF INVENTORY MANAGEMENT AND CONTROL ON FINANCIAL PERFORMANCE OF DANGOTE CEMENT PLC
Ndagi Mohammed Idris and Shaba Mohammed
Volume 13 Issue 2
Abstract
This study examined the effect of inventory management and control on the financial performance of manufacturing companies in Nigeria, using Dangote Cement Plc as a case study. The objectives were to determine the effect of Inventory Turnover (ITR) and Inventory Conversion Period (ICP) on Return on Assets (ROA) of the company. Secondary data were obtained from the audited annual reports of Dangote Cement Plc for a period of five years (2020-2024), and the data were analyzed using regression analysis. The findings revealed that both Inventory Turnover and Inventory Conversion Period have positive and significant effects on the financial performance of the company. This implies that efficient inventory management practices enhance profitability and asset utilization in manufacturing firms. The study concludes that proper inventory control contributes significantly to improved liquidity, reduced holding costs, and sustainable operational efficiency. It recommends that manufacturing companies adopt modern inventory management systems, and should maintain optimal stock levels in order to achieve long-term profitability. The study contributes to existing literature by providing empirical evidence from Nigeria’s manufacturing sector and underscores the importance of inventory management as a strategic tool for enhancing firm performance. Keywords: Inventory, Management, Financial Performance, Cement
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