Study On Performance Evaluation Of Corporate Working Capital Management

In recent years, the research of working capital management has been given more and more attention in our country. Furthermore, the direction gradually transformed from research based on single factor to research based on channel management. Many studies on working capital added supply chain management, channel relationship management and customer relationship management into it, which promoting innovation in working capital management theory and management mode. Studies on working capital performance evaluation system have improved at the same time. The evaluation was made through working capital turnover rate include procurement, production and sales channel instead of single factor, making the evaluation more comprehensive. Although most theoretical research suggested that non-financial index should be added into working capital management performance evaluation but the non-financial index was only as a supplementary reference instead of included in the performance evaluation. In this paper the performance evaluation is analyzed and supplemented based on the channel management and working capital management. Then the analytic hierarchy process is used to make the performance evaluation system established more usable and the working capital management performance evaluation more comprehensive. It provides new way of working capital management performance evaluation system which is added non-financial indicators.This paper mainly uses normative analysis method, literature analysis method and the analytic hierarchy process. Firstly literature analysis is used to sort of study on working capital performance evaluation at home and abroad to lay the foundation for the theoretical research. Then, through normative analysis, this paper put working capital management into enterprise strategic planning based on the theory of customer management, channel management, supply chain management and the reclassification of working capital, and analyze the necessity and rationality of putting the non-financial indicators into the working capital performance evaluation from the perspective of strategy. Furthermore, through the analysis of the factors that influence the working capital on the functional level, design the index combined non-financial index and financial index from four dimensions include the profitability, risk, liquidity and harmony. The evaluation of each dimension is the combination of quantitative analysis and qualitative analysis. Finally, by the analytic hierarchy process that can evaluate the qualitative and quantitative index at the same time, this paper makes weight set on all the evaluation indexes making the working capital management performance evaluation system more complete, letting the weight set more scientific and increasing the availability of the system.This paper has three innovation points. Firstly, through analyzing the working capital management from the perspective of strategy, through analyzing the new method and new definition of working capital, this paper put working capital management into the strategic management of enterprises instead of business level of enterprise. Secondly, this paper analyzes the key factors affecting the working capital management activities from macro and micro perspective, and lay the foundation for the index design. Finally this paper add non-financial indicators in the performance evaluation system to make qualitative evaluation and quantitative evaluation at the same time. This makes the working capital management performance evaluation more comprehensive. Target companies can not only manage the value of working capital, but also possible evaluate all aspects of corporate activities, improve business processes. It can promote all aspects of working capital management. This paper also use the analytic hierarchy process to make the weight of each index more reasonable and practical.