Researching On Working Capital Management Of DongFeng Automoblie Co.,LTD Based In The Value Chain

In recent years,national policies have emphasized the reduction of leverage and inventory.While China's automobile manufacturing enterprises are developing rapidly,many problems exist in the management of working capital.Working capital runs through every link of the production and operation activities of automobile manufacturing enterprises.The level of management determines the operation effect of the enterprises and also affects the increase of enterprise value.DongFeng Automobile Co.,LTD,as an established state-owned enterprise in China,has a high market share and a high position in the industry.First of all,after introducing the basic situation of the company,this paper made a simple analysis of the financial situation of the company in the past five years,and through the analysis of the internal structure of current assets and current liabilities,this paper got a preliminary understanding of the working capital management of the enterprise in the past five years.Then,based on the theory of value chain management,a more in-depth analysis is made on the working capital of the enterprise.This part has two main contents:first,the working capital management analysis from the perspective of internal value chain.With the theoretical basis of channel management,DFAC's internal value chain is divided into purchasing channels,production channels and sales channels,and the working capital management of DFAC in each link is specifically analyzed.The second is the analysis of working capital management from the perspective of external value chain.DFAC's external value chain includes upstream suppliers and downstream distributors.The turnover rate of accounts payable and accounts receivable are respectively selected to evaluate its working capital management.Finally,the problems of working capital management in the perspective of internal and external value chain of Dongfeng Motor Corporation were summarized,and the causes of these problems were analyzed.In response to the problems found,the corresponding solutions are proposed to broaden the financing channels of enterprises and improve the management level of working capital.It is concluded that the use of value chain management to analyze the working capital of an enterprise can help the enterprise to find out the deficiencies in its own development,optimize each link of the value chain,achieve the purpose of value creation,and finally realize the maximization of the value of the enterprise and help the enterprise to develop better.At the same time,it will also raise the attention of other enterprises in the industry to the management of working capital and promote the healthy development of the industry's working capital.