The Analysis And Evaluation Of Xinsai Co., Ltd’s Working Capital Management

Working capital management is a very important part of finanicial management. It can affect acompany’s financial risk, value and Profitability to a large extent. What makes the management of workingcapital so important is complicated. For example, in a typical manufacturing enterprises, more than half ofthe complany’s totle assets are current assets; in a trading company, current assets take a larger part. Toomuch current assets will negatively affect a company’s profitability, but if the level is too low, it will reducethe company’s liquidity, which will made the company unable to operate smoothy. The purpose of workingcapital management is to achieve a balance between liquidity and profitability. As the most dynamicelements among a company’s funds, working capital will directly affect the survival and development ofenterprises. Improper working capital management system and method may lead to business failure, andeffective working capital management system and method can promote sustainable development. Theimportance of working capital management is self-evident.Agriculture is the foundation of the nationaleconomy and ecological civilization, especially for China. Agricultural industrialization is the developmentdirection of modern agriculture, leading enterprises are key to promote the industrialization of agriculture,and agriculture-related listed companies is the leading enterprise in the "leading." These agro-listedcompanies connected the production and supply of agricultural products, provide a lot of working capitalfor agricultural production, support and help farmers make the necessary investments in agriculturalproduction and promote agricultural science and technology to achieve. Thus, bigger and strongeragricultural listed companies mean a lot for promoting agricultural industrialization and modern agriculture,or for leading farmers to increase income. Therefore, this paper chose a agricultural listed company-Xinjiang Sailimu Modern Agriculture Co., Ltd.(hereinafter referred to as Xinsaigufen company) to study,which is based on elements and channel management. The paper explored the problems of the company’sworking capital management and why there are those problems. What’s more, give some suggestions to thecompany’s working capital management.The essay anaylsis the company’s working capital configuration and source based on the use ofliterature analysis, case study method, comparative analysis and structural analysis, integrated the idea ofchannel management into working capital management. Combined with the industry’s feature and otherlisted companies, this paper analyzed and evaluated the working capital management of Xinsai Co., Ltd.According to the above, put forward some countermeasures and suggestions.