ABSTRACT
The study examined the relationship between inventory £nd financial performance in Dangote Sugar Refinery (DSR) in Nigeria. Specifically, it assessed the relationship between rawr materials inventory (RMI), work-in-progress inventory (WIPI), finished goods inventory (FG1), material supplies inventory (MSI), packaging materials inventory (PMI) to proxy inventory and return of assets (ROA) to proxy the financial performance.
Longitudinal research design was adopted for the study, in which data was collected within the period of 2006 to 2019. Secondary data were gathered from the company's annual reports and the Nigerian Stock Exchange (NSE) on the different inventory such as raw' materials inventory (RMI), work-in-progress inventory (WIPI), finished goods inventory (FGI), material supplies inventory (MSI), packaging materials inventory' (PMI). The data collected were analyzed with descriptive statistics, correlation analysis and multivariate ordinary least square data techniques and the analysis w'as carried out with the aid of Econometrics View s (E-Views) package version 9.0.
The study found that there is a positive relationship between raw materials inventory, packaging materials inventory and the financial performance while there is a negative relationship between work-in- progress inventory, finished goods inventory, materials supplies inventory and the financial performance of Dangote Sugar Refinery in Nigeria. The study recommended that Dangote Sugar Refinery should strive to improve the work-in-progrcss inventory, finished goods inventory and material supplies inventory to enhance the financial performance of the company.
