Research On The Impact Of Operating Working Capital Management On Operating Performance

Working capital management is an important part of corporate financial management.For manufacturing enterprises,operating working capital is the direct source of their operating profits.Therefore,the management level of operating working capital should directly affect the operating performance of manufacturing enterprises.A review of relevant literature at home and abroad found that working capital management generally includes two aspects: working capital management policy and working capital management efficiency.After clearly defining the related concepts of working capital and operating working capital,this paper also conducts analysis of current situation and empirical research of operating working capital management policy and operating working capital management efficiency,analyzes the existing circumstance of the operating working capital management of listed manufacturing companies,and explore its impact on operating performance.This paper selects the financial indicators related to the operating working capital management and operating performance of listed manufacturing companies from 2012 to 2018.First,using the clustering analysis,the operating working capital management policies are divided into 3 types: aggressive,moderate,and conservative.Secondly,using descriptive statistics,it is found that since 2015,the number of companies adopting the modest operating working capital management policy is more than that of conservative ones and gradually rising,while the number of companies adopting the aggressive operating working capital management policy is slowly decreasing;according to the turnover period Changes,the number of companies whose operating current asset turnover period,operating current liability turnover period,and operating working capital turnover period are shortened is more than those that are being extended,but the industry average turnover period is being extended;The core profitability of management assets of the enterprises adopting the conservative working capital management policies is higher than the industry average,while the operating performance of the enterprises adopting the moderate management policy is relatively poor,and the operating performance of the enterprises adopting radical management policies varies from time to time.Then,combined with the theory and existing circumstance,put forward related hypotheses,establish a model,and use STATA data processing software for multiple regression.From the results of empirical research,it is found that from the research of operating working capital management policies and operating performance,it is concluded that the proportion of operating current assets and the proportion of operating current liabilities are significantly positively related to operating performance.From the study of operating efficiency of operating capital management and operating performance,it shows that the operating current asset turnover period,operating current liability turnover period,and operating working capital turnover period have a negative impact on the company's operating performance.According to the group regression,the operating working capital management policies and efficiency indicators of the conservative group have a higher degree of influence on the operating performance than that of aggressive group and the moderate group.Finally,based on the conclusions of analysis of current situation and empirical research,the related recommendations and future outlook are briefly presented.