The Research Of Working Capital Management In H Trading Company

With the development of market economy in China,the various walks of life in our country are faced with great challenges as well as opportunities.If the enterprises want to survive in such a competitive environment,they must strive to enhance its own core competitiveness.Working capital is the enterprise's capital projects in the fastest changing,the strongest liquidity and most dynamic part,and the management of working capital run through all aspects of the procurement,production and sales.So the operation and management of working capital directly affects the efficiency of the use of the working capital of the enterprise,and ultimately affect the profitability of the enterprise.How to find and solve the existing problems in the management of working capital has become the focus of enterprise managers.In recent years,some enterprises at home and abroad are committed to the innovation of working capital management model.Although China's enterprises in the management of working capital has achieved some success,but compared to some developed countries,there is still a certain gap between China's enterprises and foreign enterprise,for example,the lack of corresponding theory,lack of professional personnel and lack of experience.In recent years,China's foreign trade situation is not ideal,the international economic situation is very complicated and the downturn and weakness is still the main theme of the world economy.Many trading companies are operating inadvertently even face bankruptcy,when we investigate the cause of bankruptcy,we find that most of them are due to the lack of scientific and reasonable means in the management of working capital.So when we under the background of global political turbulence and the grim situation of China's trade development,we need to strengthen working capital management of foreign trade enterprises.As we know,for us is of practical significance,and a scientific working capital development model is conducive to the sound development of foreign trade business.H trading company is engaged in foreign trade and it is the key enterprise.In this paper,according to the specific circumstances of H trading company and the relevant policies of China's trade sector as the background.Firstly,we start from the speculative knowledge of working capital and working capital management,introduce and analyze the theories related to this article,which could support as a good theoretical basis for the researches of the paper.Secondly,in this article,we adopt the methodology of case study and take H trading company as the object of study.In order to find out the problems of working capital management in H Trading Company,this paper introduces the existing circumstances of the structure of the working capital,the scale of the working capital and the main items of the working capital.We make comparison between H Trading Company and the leading enterprises in the trade industry,this paper analyzes the problems of working capital management from two aspects: vertical and horizontal,and analyze the causes of these problems.Finally,this paper focuses on the causes of working capital management and then explores a way to deal with the problem of the company's working capital management based on learned knowledge and industry characteristics,puts forward some specific suggestions on strengthening the management of working capitalI hope in a certain extent,these solutions can help the company to improve the security of its working capital and to improve the operational efficiency of its working capital,so as to effectively reduce the business of financial risk and to improve the company's core-competitiveness.And I hope it can provide a reference for similar enterprises.Beyond that,the subject of this paper is H trading company,which is the trading industry.In an economy prone to fluctuating exchange rates,the existence of foreign exchange risk influences the daily business activities of the enterprise.For example,it affects the amount of accounts receivable and accounts payable.Therefore,this paper combines working capital management with foreign exchange risk management.