| Working capital management is an important part of the corporate financial management. The traditional working capital management, which is based on traditional financial reporting system, classified according to accounting elements, can control and assess all indexes through holdings and velocity. In recent years, the working capital management theory based on channel had been paid more and more attentions, and it analyzed working capital management from the perspective operating and focused on working capital flow from the whole process of purchasing, production and selling. Furthermore it also discussed how to re-construct channel structure during the process of operating, promote the efficiency of working capital management on the whole through improving channel relationships and changing the way of channel, and make potential use of capacity from a deeper level. Working capital management based on channel had adapted to the need of changing the way of modern production management, which was in the linewith the development of management accounting and expanded the research field. Howeverit also should be combined with practices of working capital management, and be discussed and studied more widely.This paper, based on the sources of working capital management theory, is divided into five chapters in order to promote the practical application of working capital management. First of all, the article illustrates the research background and significance through the analysis of Chinese and foreign literatures. Secondly it quotes the theory of value chain and enterprise life cycle, and then points out practical significance and broad prospects of working capital management theory that based on channels by comparing the problems existing in the traditional management of working capital. Then, the article turns to the framework of working capital management based on channels to make target suggestions through analyzingthe problems like incomplete understanding, unsound system and inefficiency of YT Company in the process of working capital management. The suggestions are as follows: fully recognizing the importance of working capital management; realizing the integrates of production, supplying and selling under the foundation of informatization; constructing working capital management system that based on the channel from the three aspects of production, supplying and selling.This paper is based on the idea of modern management of value chain analysis, expandsand extends the traditional working capital management system in order to improve the efficiency of working capital management from the perspective of the overall performance, and to provide some references for YT company and other companies to solve the problems of working capital management and to improve working capital management system. |
