A Research On Working Capital Management Of Company X

Working capital is called " flowing blood" and plays an important role in the daily business activities of enterprises.The quality of working capital management is directly related to the daily operation and development of enterprises.Good working capital management can reduce the risks brought by the rupture of the capital chain.As the traditional working capital management evaluation system analyzes each individual specific working capital element more independently and ignores the internal connection between each element,it cannot better reflect the actual situation of the enterprise.Therefore,on the basis of combing foreign advanced research,domestic scholars have introduced channel theory into the management of working capital,classifying the working capital of enterprises from various channels of daily business activities of enterprises,and taking effective management measures to strengthen the links between various channel projects according to the actual development of enterprises,so as to promote the cooperation between various channels of enterprises and ensure the smooth development of various economic businesses of enterprises.Retail trade is an important part of the national economic system.Its operating characteristics show that enterprises need more working capital to maintain their daily operation.Therefore,it is of certain practical significance to study its working capital management.However,in recent years,with the extensive use of Internet technology and the impact of online retailing,traditional retailing has been hit hard.Faced with the impact of the new economic form,speeding up the transformation and upgrading,scientific and reasonable choice of working capital management is the current issue to be considered by retailing.This paper selects company X as the research object,and the financial data of Company X from 2012 to 2017 are collected and sorted.Combined with relevant knowledge of working capital management,relevant data in balance sheet,income statement and cash flow statement of Company X are extracted for calculation and classification.Then,the working capital management of Company X is comprehensively analyzed from two aspects of business activities and financial management activities through multiple channels,and 20 comparable retail enterprises in the same industry are selected for comparison according to the standards of their respective industries,business scope and business contents,so that Company X not only has comparative analysis of cross-sectional data,but also comparativeanalysis of panel data.Through the analysis and comparison of relevant financial elements and indicators,this paper expounds the current working capital management situation of X Company from 2012 to 2017.Taking the channel management theory as the breakthrough point,supplemented by the factor perspective,this paper analyzes the existing problems in X Company's working capital management with the performance evaluation system of sub-channels,and puts forward relevant suggestions and countermeasures.Through the case study of company x,we can find that the overall development status of working capital management of company x is at the medium level in the industry.Compared with the data of20 other retail enterprises,X Company also has some problems in working capital management: long working capital turnover period in procurement channels and short capital occupation period for other parties;The turnover period of accounts receivable fluctuates greatly and that of accounts payable is short.The turnover period of inventory is long and the proportion of inventory is large.Problems such as poor management performance of working capital in marketing channels and blocked growth of operating income.Based on the problems found above and the reasons leading to these problems,and according to the actual development of X Company itself,this paper puts forward some countermeasures for improving the management of X Company's working capital from the aspects of procurement channels and sales channels.