A STUDY ON INVENTORY ANALYSIS BY USING INVENTORY RATIOS

Abstract

This study was undertaken to analyse the inventory of Jentex engineering. The data has been gathered through inventory balance sheet, balance sheet and profit and loss statements of Jentex engineering for the period of 2015 to 2019(5 years). The ratios such as net profit ratio, total assets turnover ratio, financial leverage, gross profit ratio and operating profit ratio was used to analyse the available data. The result suggests that though there is a raise in profitability ratios in middle period there is also a sudden fall in 2019 comparing to 2018.Proper management of inventory could support the betterment of company