Research On The Performance Of The Management Of The Working Capital Of Evergrande Real Estate Group

At present,China's economic development has entered a period of transformation and upgrading,and the industrial structure is constantly improving.The real estate market has become an important force of national economic growth.However,the economic situation at home and abroad is unceasingly turbulent,and the government's policy of regulating and controlling the real estate market is becoming stricter.The aggregation of various subjective and objective factors makes the risk of real estate enterprises increase sharply,and even causes the phenomenon of some real estate enterprises' capital chain breaking.Therefore,in order to ensure the normal operation of investment projects and smooth operation of real estate enterprises,it is necessary to provide adequate and orderly development funds,improve the performance of working capital management,reduce the invalid occupation and inefficient flow of operating funds of real estate enterprises,and prevent the risk of internal liquidity of enterprises.For real estate enterprises,it is not only an important component of the micro-economic subject,but also a key factor of macroeconomic stability.Therefore,real estate enterprises not only realize the principle of maximizing their own profits,but also maintain the well-being of people's lives.It requires that the performance of real estate working capital management must be efficient,which is an important driving force for the economic benefits and sustainable development of enterprises themselves.According to the development process of real estate projects,the whole project has the characteristics of long cycle,high risk and large amount of capital investment.Housing enterprises must carry out optimal capital turnover and management for each link,maintain a reasonable ratio of current assets to current liabilities,and maintain the liquidity security of housing enterprises' funds.In view of this,in the current complex international environment and the rapidly changing financial market environment,the performance of working capital management has undoubtedly become an important indicator for the sustainable development of real estate enterprises.In a word,the performance of working capital management of real estate enterprises has become the key to the development of the real estate industry.It is not only closely related to their own capital turnover and profitability,but also affects the stability of the entire real estate market and financial market.Through the research on the performance of Evergrande Real Estate Group's working capital management,this paper can provide the necessary reference for the real estate enterprises in China to manage their working capital and liquidity.Therefore,starting from the operating capital management elements of Evergreen Real Estate Group,this paper makes a detailed analysis of the current assets,current liabilities and related operating capacity indicators of Evergreen Real Estate Group,so as to measure and excavate the performance of single-factor strategy of operating capital management in depth;at the same time,based on different channels of operating capital management strategies,including procurement,production and so on.Sales three important links,the operating capital management performance of Evergrande Real Estate Group is evaluated objectively.Taking Evergrande Real Estate Group as an example,by analyzing its performance of working capital management,this paper finds that Evergrande Real Estate Group has some problems in working capital management,such as fast increase of inventory turnover period,unreasonable structure of current assets and liabilities,low performance of purchasing channel working capital management and slow turnover of production and marketing funds.In view of the reasons for the performance problems of working capital management of Evergrande Real Estate Group,this paper mainly considers that there are irrational expansion of business scale,blindly occupying liquidity elements,inadequate project process supervision,lack of efficient fund management system,etc.According to these reasons,this paper tries to put forward corresponding countermeasures from the following aspects.Measures include adjusting the reasonable proportion of inventory elements,improving the management and control of liquidity,paying attention to the budget management of procurement funds,implementing the business process of demand expansion,establishing the mechanism of fund risk management,optimizing the structure of working capital channels,etc.In view of these channels and factors,this paper puts forward some suggestions to improve the management of working capital in Evergrande Real Estate Group,so as to continuously improve the management level of operating capital in Evergrande Real Estate Group,realize the efficient and scientific operation of operating capital management in real estate enterprises,promote the realization of economic and social benefits of real estate enterprises,and thus promote the stability and prosperity of the real estate market in China.