The Study On Working Capital Management Of Tang Ren Shen Group

Under the background of global economic integration progress is accelerating, the modernization of enterprise management follows the philosophy of "market as the leading, money is the foundation", formed with financial management as the core of enterprise management mode. And under the financial crisis, the capital chain rupture becomes the main reason leading enterprises bankruptcy. In this case, whether the enterprise can implement the management concept of "cash is king" will affects the survival of enterprise, and it is also the magic weapon of enterprise to overcome difficulties. Handling the enterprise’s cash flow management has become a question of most interested by many entrepreneurs and financial workers. Especially as a foundation for enterprise capital management, the level and status of working capital management affects the profitability of the enterprise and management level, and even decides the survival of the enterprise. Therefore, the enterprise must get rid of the traditional management ideas and methods of working capital, use modern financial management concept to guide the management of enterprises, improve the ability of enterprise operating funds management to reduce the enterprise financial risk.TangRenShen group is one of the agricultural products processing enterprises in Zhuzhou city of Hunan province. On March 25, 2011,it was successfully listed on the Shenzhen stock exchange, and it is the one of local representative of the outstanding enterprises in Hunan province. In recent years, the growth rate of economic development is slowdown, raw material prices continue to rise, pork prices are not stable and the outbreak of natural disasters, all of these pose challenges to the development of TangRenShen group and a certain extent of obstacles. As a result, TangRenShen group should quickly adjust their management method adapting to the need of markets and the economy, strengthen the liquidity and profitability to reduce risk, improve and optimize working capital management level to promote the enterprise developed healthy and orderly.In this study, TangRenShen group was chosen as the main research object, combined with the modern financial management theory, we reviewed the domestic and foreign literature of the working capital management in recent years.Combined with the development of working capital management in the aspect of practice, the management of working capital of TangRenShen group was compared with the New Hope group between 2009 and 2013 to analyze its advantages and disadvantages in working capital management. At the same time, aiming at the shortcomings of the enterprise in the management of working capital, combined with the operating characteristics of the TangRenShen group, the optimization scheme of working capital was designed and the expected effect of implementation was evaluated. Finally, in order to ensure the optimization scheme implemented successfully, a series of security measures are put forward.