Inventory and Financial Performance selected Publicly listed Manufacturing Indonesian and German Companies

Inventory management is a fundamental supply chain management phase that affects the country’s economy.The purpose of the study is to determine the effectiveness of inventory management and its impact on the financial performance in the factoring industry, as it has become one of the leading sectors...

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Main Authors: S. P.D. Anantadjaya, P. W. Carmelita, S. Juhara, S. Irdiana, I. Moridu, E. Susanti, I. M. Nawangwulan
Format: Article
Language:Russian
Published: Government of the Russian Federation, Financial University 2023-10-01
Series:Финансы: теория и практика
Subjects:
Online Access:https://financetp.fa.ru/jour/article/view/2397
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author S. P.D. Anantadjaya
P. W. Carmelita
S. Juhara
S. Irdiana
I. Moridu
E. Susanti
I. M. Nawangwulan
author_facet S. P.D. Anantadjaya
P. W. Carmelita
S. Juhara
S. Irdiana
I. Moridu
E. Susanti
I. M. Nawangwulan
author_sort S. P.D. Anantadjaya
collection DOAJ
description Inventory management is a fundamental supply chain management phase that affects the country’s economy.The purpose of the study is to determine the effectiveness of inventory management and its impact on the financial performance in the factoring industry, as it has become one of the leading sectors in boosting the development of the national economy.Descriptive and quantitative methods were used, which mainly relied on financial data for 2013–2017 on the selected publicly listed manufacturing companies in Indonesia and Germany based on the LQ45 and DAX stock index, respectively. Several software programs (Microsoft Excel, SPSS, and AMOS) were used for solving the inventory-financial performance and value analysis based on Structural Equation Modeling.The results of the study confirm that inventory performance significantly influences financial performance, as the p-value is below 5%. Inventory performance has an explanatory power of 30.6% for financial performance. An increase in inventory performance will increase financial performance as well. Each indicator has an explanatory power of DSI (101.2%), INVTO (96.4%), FGI (63.3%), WIP (58.3%), and RMI (51.7%) towards inventory performance, which will increase performance as well. For financial performance, each indicator has an explanatory power of ROIC (97.0%); ROE (85.1%); ROA (76.9%); GR (46.7%); PM (5.6%), and OM (5.3%) towards financial performance, which will also contribute to improved efficiency.
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issn 2587-5671
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publishDate 2023-10-01
publisher Government of the Russian Federation, Financial University
record_format Article
series Финансы: теория и практика
spelling doaj-art-c7cf9731adf04df4b6cbe8f88da6866f2025-08-20T03:21:22ZrusGovernment of the Russian Federation, Financial UniversityФинансы: теория и практика2587-56712587-70892023-10-01275768910.26794/2587-5671-2023-27-5-76-891078Inventory and Financial Performance selected Publicly listed Manufacturing Indonesian and German CompaniesS. P.D. Anantadjaya0P. W. Carmelita1S. Juhara2S. Irdiana3I. Moridu4E. Susanti5I. M. Nawangwulan6IPMI Business School KalibataIBM–IndonesiaUniversitas Islam Syeik YusufInstitut Teknologi dan Bisnis Widya Gama LumajangMuhammadiyah Luwuk UniversitySTIE Jakarta Internasional CollegeInternational University Liaison Indonesia (IULI)Inventory management is a fundamental supply chain management phase that affects the country’s economy.The purpose of the study is to determine the effectiveness of inventory management and its impact on the financial performance in the factoring industry, as it has become one of the leading sectors in boosting the development of the national economy.Descriptive and quantitative methods were used, which mainly relied on financial data for 2013–2017 on the selected publicly listed manufacturing companies in Indonesia and Germany based on the LQ45 and DAX stock index, respectively. Several software programs (Microsoft Excel, SPSS, and AMOS) were used for solving the inventory-financial performance and value analysis based on Structural Equation Modeling.The results of the study confirm that inventory performance significantly influences financial performance, as the p-value is below 5%. Inventory performance has an explanatory power of 30.6% for financial performance. An increase in inventory performance will increase financial performance as well. Each indicator has an explanatory power of DSI (101.2%), INVTO (96.4%), FGI (63.3%), WIP (58.3%), and RMI (51.7%) towards inventory performance, which will increase performance as well. For financial performance, each indicator has an explanatory power of ROIC (97.0%); ROE (85.1%); ROA (76.9%); GR (46.7%); PM (5.6%), and OM (5.3%) towards financial performance, which will also contribute to improved efficiency.https://financetp.fa.ru/jour/article/view/2397inventoryfinancial performancepublic listedmanufacturing companies
spellingShingle S. P.D. Anantadjaya
P. W. Carmelita
S. Juhara
S. Irdiana
I. Moridu
E. Susanti
I. M. Nawangwulan
Inventory and Financial Performance selected Publicly listed Manufacturing Indonesian and German Companies
Финансы: теория и практика
inventory
financial performance
public listed
manufacturing companies
title Inventory and Financial Performance selected Publicly listed Manufacturing Indonesian and German Companies
title_full Inventory and Financial Performance selected Publicly listed Manufacturing Indonesian and German Companies
title_fullStr Inventory and Financial Performance selected Publicly listed Manufacturing Indonesian and German Companies
title_full_unstemmed Inventory and Financial Performance selected Publicly listed Manufacturing Indonesian and German Companies
title_short Inventory and Financial Performance selected Publicly listed Manufacturing Indonesian and German Companies
title_sort inventory and financial performance selected publicly listed manufacturing indonesian and german companies
topic inventory
financial performance
public listed
manufacturing companies
url https://financetp.fa.ru/jour/article/view/2397
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AT pwcarmelita inventoryandfinancialperformanceselectedpubliclylistedmanufacturingindonesianandgermancompanies
AT sjuhara inventoryandfinancialperformanceselectedpubliclylistedmanufacturingindonesianandgermancompanies
AT sirdiana inventoryandfinancialperformanceselectedpubliclylistedmanufacturingindonesianandgermancompanies
AT imoridu inventoryandfinancialperformanceselectedpubliclylistedmanufacturingindonesianandgermancompanies
AT esusanti inventoryandfinancialperformanceselectedpubliclylistedmanufacturingindonesianandgermancompanies
AT imnawangwulan inventoryandfinancialperformanceselectedpubliclylistedmanufacturingindonesianandgermancompanies