Impact of inventory control on the financial outcome of PZ Cussons Nigeria

Abstract

The study evaluated how PZ Cussons Nigeria's 􀅫inancial results were affected by inventory control, as determined by inventory conversion periods and inventory turnover ratios. This study aims to investigate the impact of the inventory conversion period and the inventory turnover period on PZ Cussons's 􀅫inancial performance. Regression analysis was used to evaluate the data in this study, which employed the ex-post factor as its research design. The results showed that the 􀅫inancial outcome and inventory conversion were positively correlated. On the other hand, PZ Cussons Nigeria's 􀅫inancial results and inventory turnover ratios are negatively correlated. According to the study, the inventory conversion period needs to be respected. They consider that businesses experience more 􀅫inancial success when their conversion times are longer. Thus, these moments call for the proper response. The techniques employed by several Nigerian businesses to determine inventory turnover ratios do not lead to satisfactory results. As a result, companies must adhere to additional grade 12 accounting requirements, which centre on assessing and disseminating 􀅫inancial data. Three fundamental principles are accountability, transparency, and ethical behaviour. Learners can record, evaluate, present, and interpret 􀅫inancial data to make wise 􀅫inancial decisions. They will also be able to compute ratios in novel ways.