Asian Journal of Research in Banking and Finance

The main theme and subject of operation management researches in the past years was improvement of operational performance. Such an objective will be realized through reducing the waiting times for raw materials to finished products, reducing the amount of processing wastes and reducing the number of physical commodities held in the company. The present investigation was aimed to study the relationship between product inventory and its dimensions (raw materials, work in progress and finished products) and financial performance in manufacturing industries considering the overall sales of companies operating in Tehran stock exchange. The research method in this investigation was descriptive of correlation type. Field method was used in order to collect the data related to the variables. Then, SPSS software was utilized in order to approve or reject the research hypotheses. The results demonstrated that the inventory performance of the company has a significance relationship with the financial performance of the company, but the inventory performance of the company has not a significance relationship with the financial performance of manufacturing industries. Moreover, there is a significant relationship between the performance of inventories separated variables (means raw materials, work in progress and finished products) and the company's financial performance. In addition, there is a significant relationship between the performance of the three mentioned variables and financial performance of manufacturing industries.