Study On Working Capital Management Of KT Steel Trading Company

Working capital management has always occupied an important position in enterprise financial management and is an important component.It runs through the whole process of enterprise operation,is the pillar of enterprise's overall capital operation,is an important lifeline to maintain the survival and development of enterprises,and can't be separated from it all the time.Because the level of working capital management directly affects the liquidity of enterprise funds,and then affects the cost and efficiency.With the rapid development of modern social economy,the importance of working capital management is particularly prominent.However,in reality,working capital is often the weak link in the enterprise's capital chain.The risk of working capital becomes the main financial risk faced by enterprises,and its risk management is complex and urgent.Therefore,working capital management is an important part of enterprise financial management.The level of working capital management has a considerable impact on whether the enterprise can maintain normal operation and achieve sustainable development.Therefore,enterprise decision makers and managers must pay more attention to the management of working capital,so as to continuously improve the economic efficiency of the enterprise.Through six chapters,from the research background and practical significance of working capital management,this paper analyses the necessity of implementing working capital management,and expounds the structure and research methods of the article.By discussing the theoretical knowledge of the financial specialty involved in the management of working capital,this paper introduces the management of working capital into the level of actual data analysis through various models and logical calculations.Through the decomposition of various items involved in the operation of the company,it discusses each item involved in the management of working capital of the enterprise one by one,including cash management,accounts receivable management,inventory management and liquidity burden.Debt project management,analysis and discussion of how these areas of management is more conducive to the operation of the company,more effective management of operating funds.In this paper,the actual operating capital management risks of enterprises are analyzed in depth,and then the effective and targeted measures are discussed.Through the analysis of financial data of benchmarking enterprises and their own enterprises in furniture industry,the author proves the feasibility and validity of the above theory with practical cases,analyses and puts forward common problems in current enterprise fund management,makes specific analysis in different fields such as liquidity,inventory and financing,and expounds the corresponding countermeasures.Finally,the author suggests that enterprises need to establish a working capital management system,need to evaluate the performance of management,and form a system.To form a set of valuable performance evaluation system,we need to start with setting goals,key indicators and so on.We need to balance financial indicators with non-financial indicators.To truly achieve the construction of internal control system of enterprise operating capital management,we need to improve the internal control environment,conduct comprehensive risk assessment,establish good control activities and extensive information and communication,and strengthen the supervision and re-evaluation of internal control.To sum up,the essence of implementing "zero working capital management" to achieve the goal of "zero working capital" is to improve the efficiency of capital utilization and maximize output with minimum input,which is consistent with the principle of "optimum allocation of resources" in input-output theory.