GL Electric Company's Working Capital Management Analysis

Working capital management is of great significance to the development of home appliance manufacturing enterprises.Operation flow of funds smooth,well-managed to ensure that enterprises for the smooth operation of the chain of sales and business income.Zhuhai GL electrical company is an international home appliance company,set research and development,production,sales and service in one.In 2006 the company won the "world famous" title,GL electrical company US "Fortune" magazine listed 100 in China.Released in 2015,"Forbes Global 2000",in its home appliances industry,ranked first in the world.GL electrical company more than 14,700 kinds of products more than 14,000 patented technology,some of which products to fill the gaps in the home appliance industry,some products even ahead of the international.In this paper,GL electrical company as a case,can provide a reference for the healthy development of GL electrical appliances at the same time,to the electrical industry leading enterprises as a template for the working capital management analysis can also provide the basis for other enterprises operating funds management.For the analysis of GL Electric Company,the paper analyzes the working capital scale and analyzes the working capital measures of GL Electric Company based on the 2010-2015 financial statements and its notes,using literature analysis,case study and structural analysis.The company adopted a radical financing measures and more robust working capital investment measures.In the existing working capital investment and financing measures,GL electrical company specific financial indicators on the performance of current assets accounted for a high proportion of total assets,current liabilities accounted for the proportion of total liabilities is too large,the current turnover rate is not high current status,It is reasonable to adjust the current assets to improve the profitability of the current assets and optimize the internal structure of the current assets to speed up the operation of the funds.Reasonable adjustment of the current assets is unreasonable and the current liabilities structure is unreasonable and the working capital turnover rate is not high.Adjust the stock structure and incremental structure of the current structure,reduce the risk of increasing corporate credit;improve the accounts receivable and inventory turnover rate to achieve rapid turnover of working capital.