| Summary: | The paper aims to investigate the effects of Inventory Turnover and Inventory Days on
firm performance in the United Kingdom agricultural machinery industry by examining past
literature reviews and empirical evidence of a primary research. Specific performance
measures such as Earnings before Interest and Tax to Sales Ratio, Gross Profit to Sales
Ratio, and Return on Assets are examined by conducting statistical analyses to determine the
correlations between inventory and financial performance in agricultural machinery
industry. The analysis of Inventory Turnover with financial performance measures doesn’t
indicate any links between these variables. Furthermore, based on the results, Inventory
Days plays a role in the financial performance of organisations however to varying degrees.
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