African Journal of
Business Management

  • Abbreviation: Afr. J. Bus. Manage.
  • Language: English
  • ISSN: 1993-8233
  • DOI: 10.5897/AJBM
  • Start Year: 2007
  • Published Articles: 4131

Full Length Research Paper

Recovery period, inventories, sales growth cycles and companies’ profitability: Empirical evidence of Iran

  Mahdi Salehi1* and Sohila Torgeh2        
  1Accounting Department, Ferdowsi University of Mashhad, Iran. 2Takestan Branch, Islamic Azad University, Takestan, Iran.
Email: [email protected]

  •  Accepted: 24 January 2013
  •  Published: 07 June 2013



The current study reviews the effects of recovery period demands and inventories going through periods of circulation of profitability of companies listed in Tehran Stock Exchange from 2005 to 2010. In this research, an efficiency asset synonymous with profitability is considered. The findings of the study show that between these two variables related to corporate profitability there is reversed relation. The study also focuses on impact of sales growth on corporate profits, because increasing sale affects receivable accounts and inventory.


Key words: Recovery period demands (AR), inventories turnover (INV), sales growth (SGROW), return of assets (ROA).