Relationship of inventory turnover and gross margin return on inventory investment (GMROII) of manufacturing in Malaysia public listed companies.

This comprehensive study delved deeply into the interplay between inventory turnover and gross margin return on inventory investment (GMROII) within the context of manufacturing sector companies listed in the Malaysia. Effective inventory management was undeniably a cornerstone of business operation...

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Bibliographic Details
Main Author: Chai, Jia Yun
Format: Thesis
Language:English
English
Published: 2023
Subjects:
Online Access:https://etd.uum.edu.my/10881/1/Depositpermission_s829949.pdf
https://etd.uum.edu.my/10881/2/s829949_01.pdf
https://etd.uum.edu.my/10881/
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Summary:This comprehensive study delved deeply into the interplay between inventory turnover and gross margin return on inventory investment (GMROII) within the context of manufacturing sector companies listed in the Malaysia. Effective inventory management was undeniably a cornerstone of business operations, profoundly influencing financial performance and operational efficiency. As such, a nuanced understanding of the intricate relationship between inventory turnover and GMROII assumed paramount significance, offering invaluable insights for informed and strategic decision-making. Employing a rigorously quantitative approach, this research harnessed secondary data derived from the financial records of manufacturing companies spanning a defined temporal horizon. Through meticulous data analyses, the researcher endeavored to illuminate the intensity and directionality of the correlation between these pivotal variables, encapsulated within a cohort of 260 publicly listed manufacturing enterprises. The discerning findings of this study illuminated distinctive trends across various sectors. Notably, consumer products, healthcare, and technology sectors exhibited a promising convergence of favorable inventory turnover and robust GMROII. In contrast, sectors like construction and transportation manifested commendable inventory turnover, albeit with comparatively lower GMROII. Intriguingly, the property sector surfaced with relatively diminished investment potential and profitability. The culmination of a meticulous analysis of 260 publicly listed manufacturing companies in Malaysia unequivocally underscored the salient premise that augmenting inventory turnover could invariably catalyse heightened profitability. It resoundingly highlighted the pivotal role that effective inventory management assumed within the expansive landscape of the manufacturing sector