Days inventory outstanding and firm performance: empirical investigation from manufacturers

Abstract

This study investigates the association between Days Inventory Outstanding (DIO) and firm performance of energy industry in Saudi Arabia, from 2013-2019. The sample comprises of 21 firmyear observations. The Pooled OLS Regression results indicate that DIO was negatively associated with firm performance. The results of this study are important for energy companies’ managements in Saudi Arabia in making decisions related to managing their inventories. Further, the results of this study can be used for future research to gain a deeper understanding of the issues of inventory management and firm performance.