Research On Working Capital Management Of A Railway Construction Co.ltd

The central of enterprise management is capital management. Working capital is not onlythe element of the general corporate funds of the most dynamic, but also material conditionsof maintaining normal production and business activities. The working capital managementdirectly affect the survival and development of enterprises. In recent years, with the rapiddevelopment of the construction industry, and an increasingly competitive, constructioncompanies widespread a large amount of accounts receivable and project paymentarrears,low capital efficiency projects,large and slow moving inventory and other phenomena.In this paper, working capital management of A company has made a comprehensive analysisdesigned to identify the existence of a variety of risks of working capital management insafety and mobility using the analysis of case, make analysis of the reasons for the existenceof hidden and the corresponding optimization measures proposed to improve operatingefficiency of the company. This will improve the operational efficiency of the company andoptimize the management quality, in addition, this will be contribute to the sustainabledevelopment of enterprises steady. Firstly, this paper analyzes the operating characteristics ofthe industry background and construction enterprises, as well as working capital managementevaluation. Secondly, this paper describes the status working capital management of ACompany, and working capital based on evaluation studies of the A’s in working capitalmanagement the existence of safety and liquidity risks, and discusses the reasons for theserisks. According to the working capital of the evaluation, this paper analyzes the risks in termsof safety and liquidity in working capital management of A company, and discusses the causesof these risks. Finally, propose some positive measures for the safety and liquidity risks of theworking capital management in this paper.Conclusions of this paper are as follows. Firstly, in order to achieve security objectives inworking capital, we need to strengthen the management of accounts receivable, changeinventory procurement and improve the level of monetary funds. Secondly, in order to achievethe goal of liquidity, we need to improve the clearing settlement system of accounts receivable. These measures can guarantee the security and accelerate the turnover rate of working capitalin some extent, and can reduce the financial risk of the business effectively, improve thecomprehensive market competitiveness of the company, and in favor of the long-term andhealthy development of the company.