A Study On Impact Of Inventory Management On Financial Performance Of Shyaam Scientific And Surgicals

Abstract

The Study Titled “A Study On The Impact Of Inventory Management On Financial Performance Of Shyaam Scientific And Surgicals” Micro-enterprise Engaged In The Distribution Of Scientific, Laboratory, And Surgical Equipment. The Research Focuses On Understanding How Techniques Such As ABC Analysis, Economic Order Quantity (EOQ), Ratio Analysis, And Regression Contribute To Efficient Inventory Control And Overall Financial Stability. Using Five Years Of Secondary Data From Balance Sheets And Profit And Loss Statements, The Study Analyzes Liquidity, Solvency, And Profitability Indicators To Evaluate The Firm's Financial Health. The Findings Reveal That High-value Inventory Items Require Stringent Monitoring, While Low-value Items Demand Only Basic Control. EOQ Results Highlight Significant Variation In Optimal Order Sizes Due To Differences In Demand And Holding Costs. Ratio Analysis Shows Consistently Strong Liquidity, Decreasing Financial Leverage, And Improving Profitability From 2021 To 2025. Regression Results Demonstrate A Strong Practical Relationship Between Liquidity Ratios And Inventory Turnover, Though Statistical Significance Is Limited Due To Small Sample Size. Overall, The Study Concludes That Effective Inventory Management Significantly Enhances Operational Efficiency, Cost Control, And Long-term Financial Performance. Recommendations Include Adopting Technology-based Inventory Systems, Optimizing Order Quantities, Strengthening Forecasting Methods, And Periodic Review Of Inventory Policies To Further Improve Financial Outcomes.

Keywords