Research On Working Capital Management Of Sichuan Changhong Base On Channel Theory

In modern enterprise management,working capital management has attracted more and more scholars and enterprises.With the integration of the global economy,the scale of enterprises is getting larger,the economic business is becoming more and more complicated,and the flow of funds is becoming more and more frequent.In this case,how to manage working capital well is of great significance to the operation and development of enterprises.A good level of working capital management can improve the working capital turnover capacity of the enterprise,and maintain the normal production and operation activities of the enterprise at a lower cost of working capital,thereby helping the enterprise to improve the efficiency and profitability of capital use.In terms of working capital management,domestic and foreign scholars have done a lot of research.Traditional working capital management research is mostly based on the internal elements of working capital,which separates closely related working capital projects.Under the condition of modern enterprise's assets and scale expanding day by day,the shortcomings of this research method which lacks the idea of overall consistency are increasingly prominent.To this end,scholars at home and abroad try to introduce modern management concepts into working capital management research,and analyze the company's working capital management from a global perspective.The most representative of these is the working capital management model based on channel theory proposed by Professor Wang Zhuquan.This research method combines the working capital management model with the business process of the enterprise,and analyzes the operation of each channel of the enterprise from the new perspective of channels Funds circulation and management status.In recent years,China's home appliance market tends to be saturated and the market competition is increasingly fierce.Home appliance enterprises are generally facing problems such as high inventory,rising cost and tight capital flow.At the same time,the author finds that in the current research on working capital management,there are more theoretical and empirical studies,and there are fewer case studies,especially for home appliance companies.Therefore,this article chooses Sichuan Changhong as the research object and pays attention to the current status of its working capital management.This article first clarifies the topic selection background and research significance,sorts out and summarizes the relevant literature and theoretical basis of working capital management,then introduces the basic situation and working capital management measures of the case company,and then conducts its working capital projects based on channel theory.Reclassify,qualitatively and quantitatively analyze the current status of working capital management in each channel,and compare it with the management status of major home appliance companies in the industry.Through analysis,this paper finds that Sichuan Changhong's working capital management level in procurement channels is better than the industry average,and its working capital management level in production and sales channels is inferior to the industry average,and further points out the problems in its various channels.And the reasons behind it,and gave the corresponding improvement suggestions.The contribution of this article lies in the integration of theory with practice,and a useful attempt is made to analyze the case study of enterprise working capital management based on channel theory.In addition,the research in this paper further proves that the working capital management model based on channel theory can effectively help enterprises to manage working capital,and has certain practicality and scientificity.However,there are some shortcomings in this article: First,during the writing of this article,Sichuan Changhong's 2019 annual report has not been disclosed.The analysis based on the 2014-2018 annual report data may be different from the actual business situation of the enterprise;second,the paper Choosing some data indicators instead of building a system data model for analysis may lead to inaccurate and comprehensive conclusions.Finally,due to the author's ability and time constraints,the writing of this article may not be smooth enough,and the research on enterprise data and related theories may be Insufficient in depth,the proposed working capital management improvement suggestions may lack in depth.