Impact of inventory management on the profitability of companies in Brazil, Latin America and USA: a correlation analysis 10.4025/enfoque.v26i3.4873

• Published in: Enfoque : reflexão contábil Vol. 26; no. 3; p. 53
• Main Authors: Luciano Ferreira Carvalho, Giachero, Osvaldo Sílvio, Kárem Cristina de Sousa Ribeiro
• Format: Journal Article
• Language: Portuguese
• Published: Maringá Universidade Estadual de Maringá, Departamento de Ciências Contábeis 01-09-2007
• Subjects: Inventory; Inventory management
• ISSN: 1517-9087; 1984-882X
• DOI: 10.4025/enfoque.v26i3.4873

One of the main conflicts that exist in the inventory management is to determine its maintenance level,since this generates costs that, for its time, they reduce the profitability of the company. But, on the otherhand, a low inventory can take the losses of sales in function of the oscillations of the demand, or at a costfor the loss of scale economy. In that sense, the present article has as objective to present a comparisonamong the Average Term of Inventory (PMRE) for economic sections in Brazil, América Latina (AL) andUnited States of America (USA), as well as analyzing the reflexes of those PMREs in the profitability of thecompany. For so much, the correlation coefficient was used between PMRE and the Return on the assets(ROA), and enter the number of days in that the inventory is financed by the company (PMFE - AverageTerm of Financing of Inventory) and ROA it. The obtained results showed that PMREs in the USA is smallerthan in Brazil and AL, and that there is a negative correlation among PMRE and ROA in the USA, but thatcorrelation is positive in Brazil and AL. Already, in relation to the number of days in that the inventory isfinanced by the company, its correlation with it ROA it negative it is shown for the three analyzed areas