Evaluating Days Sales of Inventory and Gross Margin Return on Investment to Financial Performance: Evidence from Listed Industries in Nigeria

This study investigates the relationship between Days Sales of Inventory (DSI), Gross Margin Return on Investment (GMROI), and Return on Assets (ROA) in 15 consumable manufacturing industries listed on the Nigerian Exchange Group from 2014 to 2023. Using panel data regression models, the study assesses how DSI and GMROI influence profitability, as measured by ROA. Results show that GMROI has a significant positive effect on ROA, while DSI has a negative but statistically insignificant effect. These findings emphasize the importance of profitability-based inventory measures over time-based indicators for improving the financial performance of industries.