Case Study On MD Company Working Capital Management

The safety and liquidity of assets are inversely proportional to their profitability.The company should strive to maintain the normal production and operation,not occupy too much working capital,and maximize the efficient use of idle funds to create value for the enterprise.Working capital is an indispensable component of the survival and development of enterprises.It is a bond that closely links production and sales.It gradually improves the management of working capital,accelerates the turnover of enterprises,lowers the cost of occupation,and rationally allocates resources.The traditional factor-based working capital management only focuses on a certain project and lacks consideration of the overall business process.The separation of working capital management from the business model hinders the overall utility of working capital.The channel-based working capital management and channel-based reclassification of working capital projects,linking working capital management with business processes,can more comprehensively analyze the state of corporate working capital management.Based on the understanding of the economic environment and the development background of the industry,this paper makes reference to the theoretical results of the predecessors at home and abroad,and compares the two working capital management models.The final choice is to evaluate the management effect of MD company by channel theory and redefine it.The evaluation index system,with MD company as the research object,focuses on the management status of working capital including business activities for production and sales,and comprehensively grasps the supply and demand situation and occupancy of working capital from the channel,and integrates finance and business.It is conducive to the comprehensive evaluation of the performance of working capital management.The analysis found that MD has the most complete industrial chain layout in the industry,and laid a good foundation for its working capital management.It has unique characteristics in inventory management mode,production R&D and sales channel development,and its procurement,production and sales channels.The working capital management level is in the leading position in the industry.Finally,this paper summarizes the advanced aspects of MD’s working capital management,and puts forward suggestions for improving the management methods of home appliance manufacturing enterprises.It is hoped that it will have certain reference value for other enterprises in the industry.