Research On Working Capital Management Of Meiling Electric Based On Value Creation

As the country has ceased preferential policies such as home appliance replacement,home appliances to the countryside,subsidies for energy-saving appliances and so on,the phenomenon of a sharp drop in operating performance has generally occurred in the home appliance industry after the loss of state-related subsidies.However,the large amount of liquidity of home appliance companies also precipitate in the procurement as well as production sectors,which cause difficulties in the turnover of corporate funds.At present,the survival and development of China's home appliance companies face tremendous pressure.Some home appliance companies are mismanaged because of operating funds that cause the capital chain of the company to break the fund turnover and finally declared bankruptcy.The efficient management of working capital has an important impact on the survival and development of home appliance companies.Therefore,in the current fierce economic competition,appliance companies want to avoid the risk of failure as well as survive and develop in a changing economic environment,it is necessary to strengthen the level of corporate working capital management and improve the efficiency of working capital management so as to maximize the value of the company.Firstly,This paper introduces the related concepts of working capital management and value creation as well as the main financial path of value creation in order to sort out the relationship between working capital management and value creation.Secondly,taking Meiling Electric as a case study,I will introduce the status of development and financial for Meiling Electric Appliances as well as the status quote of working capital management.Thirdly,through the analysis of the operating capital management efficiency of Meiling Electric's external value chain and internal value chain,and compare it with the management efficiency of the working capital in the same industry,I find the problems in the management of Meiling Electric's working capital and pointed out the reasons for the related problems.Finally,I will put forward relevant suggestions and optimization measures for the management of Meiling Camp'stransportation funds based on the perspective of value creation in the value chain to further perfect the working capital management of Meiling Electric.Through the study of Meiling Electric's working capital management,I hope to help improve the method of working capital management for Meiling Electric,realize the value creation of the enterprise,and provide some experience for the home appliance industry to improve the management of working capital.