ABSTRACT

The objective of this study is to find out the effect of inventory management on profitability oj listedfilms in Nigeria. The study adopts ex-postfacto i eseai ch design which involves the ascertaining of the impact of past factors on the present happening or event. The research work adopts the secondary source of data in obtaining all the data neededfor the study. In the course ofthis study it wasfound out that inventory conversion period has a positive relationship with the return on assets oflistedfirms and has a statistical insignificant effect on the return on assets ofthe listedfirms in Nigeria. Therefore in conclusion, inventory conversion period has a positive insignificant effect on the return on asset oflistedfirms in Nigeria and also Inventory conversion period has a negative insignificant effect on the profit margin oflistedfirms in Nigeriaand in consonance with this study’sfindings, it is recommended that listed firms should adopt effective and efficient inventory cost management practices; deploy appropriate modern technology for effective inventory conversion management; and employ capable and. qualified staff who should he trained regularly on proper and efficient inventory management to enhance the profitability of the firms. Also, they should encourage the prompt payment for inventory and putting the inventory into processing such that the conversion period will be reduced and goods be made available in lime io increase sales and further burst the respectivefirmsprofit margin.