Research On Working Capital Management Deficiency And Suggestions Of Company A

Working capital management is a very important part in enterprise’s financial management.On the basis of reviewing the research results of domestic and foreign scholars in working capital management,this paper summarizes the outstanding contributions and shortcomings of domestic and foreign research results,and reveals the necessity of this research.This paper expounds the theory and basic concept of the traditional working capital management theoretical system.On this basis,it draws out the popular management concept——channel-based working capital management theory.The concept of the new working capital under the channel-based working capital management system is explained and the influencing factors of the new concept are revealed.This paper give further explain on how the new concept integrate the value chain theory and supply chain theory in the field of enterprise strategic management.The research results give guidance and reference benefiting for deepening the understanding on new concept and confirming the definition of working capital.About the profitability evaluation of working capital under channel-based working capital management framework,the existing research only gives a rough conceptual index.It does not specify how to obtain the data need in the index.On the basis of predecessors’ index model,this paper explains in detail the way to establish the corresponding relationship among internal projects,and how the data should be obtained.The innovative explanation put forward by this paper has enhance the operability of the profitability evaluation of channel-based working capital system,so that more scholars can continue to do research on this field in the future.This paper choose A chemical enterprises as an example analyzing in detail from the two perspectives,traditional working capital management system and channelbased working capital management system,and revealing A chemical company’s existing loopholes and deficiencies in working capital management.Targeted recommendations was provided from following aspects,distribution channel management,procurement channel management,customer credit policy,so that A enterprises can manage working capital better.