Research On The Impact Of Inventory Capital Turnover On Firm Performance

In recent years with the improvement of the people’s living standard in China,the public demand for beverage products is also growing every year.In the face of increased competition in the beverage industry market,companies are taking all kinds of measures to take a share in the "big cake".As a manufacturing companies,the stock proportion of assets in the beverage manufacturing companies is quite high.Therefore,the success or failure of inventory management becomes the companies key to improving their market competitiveness.Under the condition of market economy,the unsynchronization of logistics and cash flow leads to the fact that the turnover of static index,calculated on the basis of the logistics in stock,can only reflect the inventory entity.But the corporate inventory turnover index analysis,not only reflects the inventory turnover situation of entity,but also is a good method to understand the use of the efficiency of funds from the perspective of financial management.It is against this background that the inventories turnover of funds which is calculated on the basis of taking up the fund capital arises.This article selects the Chinese beverage manufacturing A-shares 41 listed companies during 2007-2015 data for nine consecutive years as the research sample to evaluate of inventory for capital turnover and inventory turnover effects on business performance.Using EXCEL and STATA12.0,adopting multiple regression analysis method,the article intends to measure whether inventory capital turnover is stronger than the inventory turnover in explaining corporate performance.The empirical result shows that both the inventory turnover and inventory capital turnover have significantly inverted U type of relationship with corporate performance of beverage manufacturing.In the national economic downturn phase,companies are most likely to take practical measures,such as depreciating sales promotion and selling on credit,etc,in order to speed up the capital flow.In these circumstances,inventory turnover of funds which is calculated on the basis of cash flow is stronger than the inventory turnover in explaining corporate performance.