A Case Analysis Of Working Capital Management Of HS Company

With the economic conditions of modern market, competitions among enterprises becomefiercer and fiercer. With regard to the concentrated juice industry, whose export quantum takesabout90%of the industry output, as it’s a representative enterprise engaged in processing ag-ricultural products producing seasonally and selling year-roundly, if he wants to survive in thefierce competition, he must strengthen the working capital management of the enterprise. Withregard to the leading enterprise HS Company of the concentrated juice industry, as the mostliquid, fastest changing and most cyclical assets, working capital is the “circulating blood”ofthe enterprise lived by. The level of the management influences the survival and developmentof the enterprise directly, so it’s very important for the enterprises to strengthen the workingcapital management.This thesis takes HS Company for example to make a systematic analysis on theory andpractice of way to improve the working capital management level of HS Company and con-centrated juice production companies and providing exercisable reality model to them. Thedetailed structure of the thesis is listed as follow:Chapter one analyzes the reason for the concentrated juice industry and HS Company tostrengthen the management of working capital and meanwhile explains the objective and sig-nificance of the research of this thesis in the preface part. Chapter two summarizes the re-search of experts at home and abroad on the management of working capital and then intro-duces the concept of the working capital as well as the correlation theory of the working capi-tal’s investment and financing.Combined with the previous theory, chapter three analyzes the history and current statusof the Chinese concentrated juice industry and the situation of working capital managementin the status that the productive capacity is surplus seriously and the profit decreases sharply in the current industry as well as the reasons.After analyzing the concentrated juice production industry, chapter four describes thesituation of HS Company, then with the working capital management of HS Company asprincipal line specifies and analyses the working capital management actuality of HS Com-pany separately in accordance with the current assets and liabilities of working capital andstate the investment and financing of HS Company’s working capital management and exis-tent problem through comparing with the real data of its kind in the industry in the recent4years. Chapter five conducts a research on the optimization of HS Company’s working capi-tal management on account of the existent problems and brings up the target of the workingcapital management and the measures of the coordination and optimization of investmentand financing.Chapter six summarizes the full text and brings up the related countermeasure about howto improve the working capital management of concentrated juice industry.This article starts with the existing problem of working capital management in our con-centrated juice industry, analyzes the related theory of working capital investment and fi-nancing separately combining the situation of HS Company’s working capital and take a re-search on the coordination of investment and financing during the management of workingcapital. It’s meaningful for HS Company and concentrated juice industry to strengthen themanagement standards of working capital and improve the earning and risk resistance ca-pacity of the enterprise through seeing the seated problems of working capital managementin concentrated juice industry through HS Company, bringing up the solution and enrichingthe content of private enterprise’s working capital management on theory and practice.