Research On The Performance Of Working Capital Management Of China Railway Construction Co.,Ltd

Company’s financial management contains finance management,investment management,operating capital management and dividend distribution management.Operating capital management is an important work of company’s financial work.Some foreign researchers have done research on America company’s financial manager and find that the time financial manager spend on operating capital management account for 1/3of financial management time.A great deal of cases show that operating capital management at a high level will improve company’s profitability and lower company’s financial risk.In contrast,operating capital management at a low level will lower company’s profitability and increase financial risk.As a result,it is of practical value to study the performance of company working capital Management to improve the profitability of company and reduce the risk of enterprises.In this paper,the case study method is used to study the allocation and management performance of China’s iron construction operation funds.The case studies include a cross-case analysis unit composed of 4 companies in China Railway Construction,China Railway,China Cross Construction,and Sichuan Luqiao,as well as an embedded analysis unit composed of 11 Bureau of the Central Railway.Using on-site interviews and research,as well as website downloads and other methods to collect case evidence to analyze the case evidence data.Firstly,this paper makes a theoretical analysis on the influencing factors of the performance of China’s iron construction working capital Management,analyzes the factors that affect the performance of China’s iron construction working capital Management and establishes the case study framework based on the theoretical analysis conclusion.Secondly,the case study method is used to evaluate the performance of China’siron construction working capital Management,and to carry out case analysis on the factors influencing the allocation and management performance of the company’s working capital.In the process of case analysis,the conclusion of perfecting theoretical analysis is constantly revised.Thirdly,on the basis of the above research,this paper puts forward some countermeasures to improve the management performance of China’s iron construction working capital.Through theoretical analysis and case study,this paper draws the following conclusions:(1)China Railway Construction and China Railway’s operating Capital Management performance level is similar,but compared with Sichuan Road bridge,China’s construction of working capital Management performance level is low.The performance level of the working capital management of China Railway 11 Bureau is better than that of other case companies.(2)The factors affecting the allocation of China’s iron construction operation funds and the performance of working capital management are: macroeconomic policy factors such as the national development of railway building strategy,"double male" competition and other industry factors,the industrial chain factors of negotiating status with customers and suppliers,and the nature of the company.(3)Measures to improve the allocation and management performance of China’s iron construction working capital include: from the elements of working capital and the composition of the channel,because of the long turnover of accounts receivable,production channel Working capital turnover period is to restrict the performance of China’s iron construction working capital Management,therefore,can reduce the turnover of accounts receivable,Production channel operating capital turnover period,to improve the management performance of China Iron and iron construction working capital.From the factors influencing the management of working capital,China Railway construction can improve the performance of working capital management through the following measures: opening up overseas railway,track construction business,exploring the establishment of new core business,improving the competitiveness of core business,further improving the relationship with customers and suppliers,improving the management level of working capital of affiliated subsidiaries and so on.