The Research Of Working Capital Management Performance And Factors In Chinese Equipment Manufacturing Listed Companies

With the development of economic globalization, scientific and technological progress,international competition is escalating, the equipment manufacturing industry as the pillarindustry of national economy development, improve its competitiveness on the improvementof China’s comprehensive national strength is particularly important. So how to manage theequipment manufacturing industry enterprise is critical. Working capital management isclosely related with enterprise’s daily production and business operation activities. However,China’s equipment manufacturing industry listed companies exist some problems such asworking capital occupied severe, working capital turnover Slowly and so on. So this articlewill analyze China’s equipment manufacturing industry listed companies working capitalmanagement performance and put forward feasible Suggestions.In this paper, first of all to understand relevant theories of working capital, and from theaspects of scale, profit, gross value of industrial output,etc to analyze the overall developmentcondition of the equipment manufacturing industry of listed companies in China,and foundthat the size of the equipment manufacturing industry in our country listed company, profitsand employment rising year by year. At the same time, the number of working capital increaseyear by year, and capital turnover speed slow down year by year.Secondly, based on the working capital management theory and development, Choosing420listed companies of the equipment manufacturing industry in our country as the researchsample, using factor analysis from the capital structure of working capital management, profitability, operating ability, growth ability, source of funds, debt paying ability and so on, toevaluate it’s working capital management performance. And found that the level of workingcapital management performance of listed companies is relatively low. And Difference exists in the short-term debt paying ability, capital structure, growth ability and capital sources.Then, based on the working capital management performance evaluation, Selecting2000listed companies’dater of the equipment manufacturing industry in our country as the researchsample, and using regression analysis method to analyze the influence factors of workingcapital management. Found that listed companies working capital management is mainlyinfluenced by Return on Assets ratio, Non-current Assets Ratio, Debt Asset Ratio, theninfluenced by Equity Balance, Net Cash Flow from Operating Activities, Current Ratio,Growth Ability, Chief Financial Officer’s Age, Company Size and so on. Among them, ChiefFinancial Officer’s Age had no significant influence on the amount of working capital, and theinfluence of company size on cash turnover period was not significant.Finally, according to the working capital management performance and influence factors,Put forward that companies should determine suitable amount of working capital for their owndevelopment, strengthen the management of accounts receivable and inventories, cultivateyoung chief financial officers to inject new blood for the enterprise and so on.Hope to providereference for improving the enterprise management of working capital.