Research On The Efficiency Of The Real Estate Companies’ Working Capital

Working capital as the blood of the enterprise,and it now plays an important role in the enterprise’s development. With the global economic and the outbreak of financial crisis, more and more scholars focus on working capital. Working capital takes up too much, thus company will waste resources. Working capital allocation is not reasonable, it is so easy to cause the problem such as capital chain rupture. The purpose of working capital management is to improve the efficiency of working capital, and increase enterprise value. Real estate industry as a special industry, its working capital have their own characteristics, they need a lot of money as support in the process of its normal operation, and a longer production cycle, cash turnover period is also longer. Through data analysis we found that the real estate industry has experienced rapid growth after a few years ago, the industry is now faced with more practical problems, mainly include that financing channel is too narrow, and the strong dependence of Banks and other financial institutions; Stock items take up many money, it cause money precipitation and increase the enterprise cost; The owner of the company take an optimistic attitude towards prospects of the industry, and they are keen on expansion. The current real estate companies generally faced with these problems. In addition the real estate industry is an industry which is closely linked with people. Housing is the basic needs of the people. Once the real estate enterprises appear problem, its consequences incalculable. To solve these problems, the enterprise should first start from their own, and improve its market competitiveness, and create value for customers, and establish a good image,and reduce the working capital needs, and it can also attract the strategic investors to expand the financing channels; Get through the internal channels of information, companies can reduce inventory capital taking up, shorten the operating cycle, and eliminate unnecessary time waste and friction between departments, at the same time it can accelerate the capital turnover; Get through the enterprise external information channel, companies should actively cooperate with stakeholders, and make full uses of social resources; According to certain standard that class the enterprise project, companies manage the working capital from the perspective of project categories that based on channel to the enterprise; By intense supervising of working capital, company can adopt strict system of project examination and approval, and prudently investment; Thinking innovation, seek new pattern of production and sales.