Research On The Forecast Of Working Capital Requirements Of RH Company Based On Channels

The forecast of working capital demand is one of the important contents of corporate financial management.Making scientific and reasonable predictions of working capital requirements is a necessary condition for companies to increase the level of working capital management and to avoid working capital risks.The channel-based forecast of working capital needs can effectively monitor the business operations,investment activities,and the use of funds,and maintain the smooth flow of funds in all aspects so as to maintain t he normal operation of enterprises and enhance the competitiveness of enterprises.There are usually two methods for predicting working capital demand,namely qualitative forecasting methods and quantitative forecasting methods.These two methods are superior and inferior,and it is difficult to conclude that in the actual working capital forecasting process,it is usually not possible to rely on only one forecasting method.This article takes RH company as the research object.When forecasting the company' s working capital requirement,it also uses the qualitative forecasting method and the quantitative forecasting method,and combines the two together to conduct a comprehensive analysis to obtain a better forecasting effect.RH Company is a manufacturing industry,and its capital turnover is slow.Its working capital needs are affected by factors such as production environment,business scale and corporate fund management level.From the financial data in recent years,RH Company has the problems of low working capital utilization efficiency and lack of modern working capital management concepts.Moreover,management has not fully realized the importance of forecasting the working capital requirement and has a single forecasting method.Affect the accuracy of its working capital decisions.This paper is based on the current status of RH's working capital operation and the objective environment for its working capital demand forecast.From the perspective of channels,the company will conduct in-depth discussions on the capital requirements of the company,trying to find out the development potential of its working capital management,and establish a channel-based RH.The company's working capital demand forecasting model is a forecasting model for four channels: procurement,production,marketing,and wealth management.Each forecasting model analyzes the influencing factors and uses the financial data of RH Company for the past five years to apply the above model.The forecast results show that the working cap ital of procurement channels and production channels is negative,which indicates that the company's own working capital is reduced.Enterprises should make rational use of commercial credit and strengthen the management of product inventory;the working capital for marketing channels and financial management activities is positive.This shows that most of the company's working capital is occupied,and companies should be cautious about using loose credit policies and strive to increase the return on their investment in wealth management activities.In summary,scientific forecasting of RH's working capital needs can help to improve its investment and financial management decisions,coordinate its production and business activities,and estimate the impact o f changes in production and business activities on the demand for working capital..This article forecasts the RH company's working capital requirements and establishes a scientific method for predicting the working capital demand,which provides an important reference for other domestic companies to solve their working capital problems.