In a competitive environment to sustain the business in the global market, it is essential to control the quality and cost of goods also provide goods to the customer within a stipulated time. In such a scenario Inventory Management is one of the important tools to improve the company performance. Every business activity from the shop floor to the finished goods warehouse holds inventory in an organization. Ratio analysis of financial statements is performed to know the profitability performance of the Indian cement industry by using descriptive statistics. Also, this paper analyzed and discusses the impact of inventory management practices on profitability performance by correlation analysis. The required data has been collected from the annual reports of the respective cement companies for the period of 2011 to 2020. The result helps the investor in the investment decision. Correlation analysis was used to determine the nature and magnitude of the relationship between Inventory Turnover Ratio and Gross Profit Margin. The results indicate that there exists a positive correlation between the variables. Computation is made using ‘MICROSOFT EXEL’ software.
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