Case Study On Working Capital Management In Tianfu Company

Working capital management as an important part of the financial management system, related researches began in the1930s. Working capital management is closely related to the daily operation and business management, good working capital management will bring great benefits, which is why financial managers put one third of their working hours into working capital management. As the saying goes,"cash is king", once the company’s cash flow is broken, the businesses will be devastated. Therefore in modern business management, more and more companies begin to focus on working capital management, there are a large number of scholars become studying in working capital management. In our highly stressful environment from macro-financing aspect, how to improve the efficiency of working capital management, make effective use of funds to achieve maximum effect, improve economic efficiency and competitiveness, it’s a forever question many companies are trying to address.From the advanced theoretical knowledge of working capital management local and abroad, the study analyzes the related theories, the theoretical basis for the research article. Take the case study of working capital management in Tianfu Company, trying to find its problems in working capital management and propose solutions to these problems. When breaking down the constituent elements of working capital in Tianfu Company, mainly starts the research of working capital management from three aspects of liquidity, profitability and efficiency, analyze the causes of these problems. In order to promote the working capital management in the future in Tianfu Company, the paper also presents optimization solutions from multiple dimensions to solve these issues.Working capital management is the soul of enterprise financial management, a complete and scientific working capital management system can help enterprise maintain its initiative in the competition. Hope by this study, it not only can help Tianfu Company to a in-depth understanding and improvement in working capital management, but also for those companies similar to Tianfu, can provide a good reference in working capital management.