The Research On Working Capital Management For Valve Manufacturing Enterprise

Since China’s reform and opening up, Chinese valve manufacturing industry hasestablished a solid foundation. The total manufacturing and manufacturing technologylevel of Chinese manufacturing industry has greatly improved. At present, China valvemanufacturing industry ranks fourth in the world, just behind the United States, Japan andGermany.As the global economic downturn, the financial crisis intensified, domestic andinternational market competition is increasingly fierce. Valve manufacturing enterprises ishard by raising the prices to remain profitable, because higher price will weaken thecompetitiveness and falling sales. Although on the economic benefit and scale increasing,Chinese valve manufacturing enterprises still lack of competitiveness and their profitabilityis not strong. In the case of external resources is more and more difficult to obtain, theenterprise improving the internal performance and enhance the potential competitiveness isan essential choice. To improving management level and operating efficiency is verynecessary and urgent for a manufacturing enterprise. Working capital management is oneof the key links in order to strengthen the management of valve manufacturing enterprises.This paper combines theory with practice based on the existing research literature onthe basis of the working capital management. According to the characteristics of themanufacturing enterprise itself and its influence factors, this paper put forward thatmanufacturing industry should adopt moderate working capital policies. At the same timethis paper takes R manufacturing enterprise as a living example to demonstrate the validityof the approach and provides a certain reference value to other related manufacturingenterprises in working capital management. Hope this research can make proposals forvalve manufacturing enterprises in the implementation of working capital managementsystem construction.