HOLY ANGEL UNIVERSITY

ABSTRACT
The main purpose of this study was to evaluate the nature of the relationship between
inventory management and profitability of Frontway Technologies Inc. The study was guided
by the three main objectives: to determine the nature of relationship between standards and
procedures, employed in inventory management, and profitability of Frontway Technologies
Inc.; to examine the nature of relationship between inventory turnover ratio, as performance
indicator of inventory management, and profitability of Frontway Technologies Inc.; and to
determine the nature of relationship between inventory management and profitability among
the Electronics and Gadgets center businesses.
This study was limited to the variables presented in the conceptual framework. The
independent variables were the standards and procedures employed in the inventory
management and the inventory turnover ratio while the dependent variables were the
measurements of profitability. Data was collected using survey questionnaire and gathering
of financial statements. Descriptive statistical tools were used in analyzing the data and
Pearson coefficient of correlation was used in evaluating the relationships of variables.
This study has concluded that there is very strong positive relationship between
standards and procedures, employed in inventory management, and profitability of Frontway
Technologies Inc.; There is strong positive relationship between inventory turnover ratio, as
performance indicator of inventory management, and profitability of Frontway Technologies
Inc.; and There is weak relationship between inventory management, and profitability among
the electronics and gadgets center businesses. The researchers have concluded also that
overall there is very strong positive relationship between inventory management and
profitability of Frontway Technologies Inc.
The researchers recommended that Frontway Technologies Inc. should continuously
conduct proper management of its inventory. The investors of the electronics and gadget
center business are advised to analyze also the inventory management of their prospect
companies because it strongly affects their return on equity. The future researchers are

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advised to go in-depth with other more aspects or measurements of inventory management
and profitability.