Inventory management and profitability: Turkish IT distributors listed in Borsa Istanbul

One of the main factors in determining the company's success is its management of scarce capital and business strategies. In today competitive environment, businesses must have sufficient working capital in order to ensure their survival. Inventory is one of the key factor in the working capital management. Inventory management effects on the profitability investigated with correlation and regression analysis conducted via balance sheets and income statements of firms using only four Turkish Information Technologies distributors which listed on Istanbul Stock Exchange XBLSM Index (Borsa Istanbul (BIST)) over a period of 10 years from 2010-2020. Profitability measured by Change in Gross Profit Margin and inventory management measured by Change in Inventory Turnover Dates, Change in Account Receivables Turnover Days, Change in Sales and Change in Stocks. Quarterly financial reports used for the research. The data for the analysis is collected from the Public Disclosure Platform (PDP) database, which contains financial information on all stock exchange firms. While correlation analysis shows statistically meaningful relationship, regression analysis did not show any statistically meaningful relationship between the inventory management and the profitability in the study.