Study On Working Capital Management Of H Company Based On Channel Theory

Working Capital plays an indispensable role in enterprises' operation.Good working capital management is beneficial to enhancing the ability to resist risks and to promoting sustainable development of the enterprises.Domestic studies put forward the theory of working capital management based on the channel theory and classifies the operating funds on the basis of various channels of daily business activities of the enterprises because traditional working capital management,independently inspecting the specific item,interrupts the relationship of projects and doesn't adapt well to the actual situation of enterprises.Studies also take overall management methods strengthening the connection between various channels and promoting the cooperation between enterprises in the operation of various channels,which provides matching operation fund management methods to ensure the spread of enterprises' activity.However,there are many problems and challenges in the management of operation funds with the gradual deepening of the Internet in the pharmaceutical industry.Under this background,working capital management of H pharmaceutical company should solve the problems in the information age while enjoying the Internet technology welfare,and improve the management of operating capitals.This paper selects H Company as a case,and compares its operating capital data within five years from 2012 to 2016 with the average data of the pharmaceutical industry and that of other three leading companies in heparin industry.This paper consists of five chapters.The first chapter is the general introduction:firstly,it introduces the research background and significance of this paper;secondly,it analyzes the relevant literature about working capital management both at home and abroad,and finally it untangles and establishes research methods and ideas of this paper as well as summaries the research innovation.The second chapter is about related theories of working capital management.It shows descriptions about working capital from its definition,factors and theoretical basis as well as contents,advantages and performance evaluation systems.The third chapter is the current situation and existing problems of H company's working capital management.From the comparative analysis of the changing trend of total working capital,changes of specific projects,proportion status,financing structures,performance evaluation in each channel management of working capital and other aspects between data of H company and average data of other three companies in the pharmaceutical industry,this paper finds out problems in each channel management of working capital and also analyzes corresponding reasons.In the fourth part,it puts forward targeted countermeasures for H company's working capital management based on the channel theory after the analysis of related theories of working capital management,characteristics of the pharmaceutical industry and the influence of Internet.The fifth part is the research conclusion and prospects.It sums up research contents in this paper,finding out some shortcomings in the research and providing an outlook of future researches.The innovation of this paper is overall analyzing the current situation and problems of H Company' s working capital management based on the channel theory,combining with the background of the new internet era.It divides the H company's working capital into two parts:business activities and finance activities,and then analyzes them separately.It also studies existing problems in business activities from procurement channels,production channels,marketing channels and other aspects and proposes countermeasures to improve the working capital management of H company,which not only enriches empirical research results,but also offers certain reference significance for working capital management of pharmaceutical enterprises under the background of new era.