Research On Management Of Working Capital Of CHML Electrical Appliance Company

With the continuous progress of China’s market economy,its overall economic environment is constantly changing,and the corresponding company management methods are also constantly changing.The previous financial management is to achieve the highest level of profit,now it has become to achieve the maximum value of enterprises.Therefore,the management of value has become the core content of enterprise management,and the theory of value chain management has been paid more attention.Working capital management is a very important and indispensable part of the daily operation and management of enterprises.Operating capital is the most dynamic among the enterprise funds,but it is also the weakest link in the value chain.With the acceleration of economic globalization,the competition among different companies in the same industry to seize market share is becoming more and more fierce.More and more companies are facing the problems of low management level of working capital and lack of internal control system.In recent years,the shortage of working capital has become an urgent problem for domestic appliance manufacturers in China.Therefore,it is indispensable to explore the level of operating capital management in household appliances manufacturing enterprises so as to improve the overall level of operating capital management in the company’s value chain.This paper takes CHML Electrical Appliances Company as the research object,combs the current situation of operating capital management of CHML Electrical Appliances Company based on factor theory and value chain theory by using literature analysis and statistical analysis,and finds that there are problems in operating capital management of CHML Electrical Appliances Company,such as excessive occupation of accounts payable,difficulty in recovering accounts receivable and serious backlog of finished products.The causes of the problem are weak management awareness of working capital,overdraft company’s own credit,neglect of customer credit management and backward inventory management mode.Finally,from the perspective of value chain,this paper puts forward some measures to optimize the management of working capital of CHML Electrical Appliance Company.The measures proposed in this paper include setting up the idea of workingcapital management based on value chain,paying attention to supplier value chain management,strengthening the recovery of accounts receivable and establishing VMI inventory management mode based on value chain.These optimization measures will help the company greatly enhance its management level of working capital,speed up the turnover of working capital,and enable CHML Electrical Appliances Company to realize its value most quickly.Dahua also hopes to provide some reference for other companies in the household appliances industry.