Correlation Investigation On Operation Capital Management And Enterprise Performance Of Listed Enterprise Of Steel Industry

At present, a large amount of state-owned enterprises of steel industry areexperiencing difficulties in production and business operation, even suffering heavylosses, and several state-owned enterprises are tolerating the heaviest losses. In2012,there were23enterprises in steel industry suffering annual cumulative losses, withyear-on-year increasing of1.88times., the amount of loss is as high as28.924billionwith year-on-year growth of7.39times.Economists and researchers believe that the steelindustry should drive and enlarge its structure adjustment by reform and innovation toachieve transformation development, which also is a fundamental way for steelenterprises to get out of the trouble.“Reform of property right structure and optimizationof financial assets structure” is mainly pointed out in research. However, the optimizationof financial assets structure should start with the most basic capital link of financialmanagement, operation capital management is basic portion of the funds management, soit is undoubted to regard the operation capital management as the primary task of theoptimization of financial assets structure of steel enterprises.Operation capital management is not only the important component of enterprisefinancial management, it also is closely related to the daily operational activities ofenterprise, to some extent, the level of operation capital management directly affects thestrength of the enterprise competition ability. The analysis of the operation capitalmanagement of steel enterprises is to the benefit of pinpointing the situation of steelenterprise in operation capital management aspect, facilitating the further optimization offinancial assets structure and making the important step of enterprise structureadjustment in financial management aspect. The paper begins with the theory of operation capital management, combining with the current situation of operation capitalof steel industry to make depth analysis, at the same time,31listed enterprises of steelindustry are selected as samples of empirical analysis, making empirical investigation tothe relation between performances of operation capital management enterprises in2002to2012with multiple linear regression analysis method of the statistical software.Investigation result: current assets ratio is in significantly positively correlation withenterprise performance; accounts receivable turnover, inventory turnover are insignificantly positively correlation with enterprise performance; accounts receivableturnover is in negatively correlation with enterprise performance, and is not significant;enterprise scale and the asset-liability ratio are respectively in significantly positivelycorrelation with enterprise performance.Finally, based on empirical conclusion, the improvement of operation capitalmanagement is advised by writer to facilitate the profitability of enterprise, the advice isas follows: optimize operation capital structure, strengthen management of accountsreceivable and inventory Strengthen exchanges between enterprises; enhance inventorymanagement, improve inventory turnover; emphasis payable management, establish agood working relationship with suppliers; optimization of working capital structure,etc.