Research On Improvement Of TG Refractories Company’s Working Capital Management Performance

The circulating coverage of working capital in the company is very wide,for this reason,working capital management is also credited as one of the foremost aspects in corporate financial management conducive to increased capital turnover and generation of corporate revenues.At present,when people study the company’s working capital management,they usually evaluate the company’s working capital management performance to judge the quality of the company’s working capital management.Working capital management performance more clearly manifests the management status and level,so it has certain significance for the company’s sustainable and healthy development.Recently,due to the saturation of existing refractories product market,and the increasing intensification of industrial competition,relevant companies are subject to more limitations from downstream steel mill companies.Refractories companies are facing problems such as difficulty in receiving payment,overstocking and increased competition,which undoubtedly poses huge challenges to the working capital management of companies in this industry.TG is in the refractories industry.If it wants to sustainably develop and stand out in such a market environment,it must improve its working capital management performance.In order to help TG Refractories Company quickly adjust its working capital management method according to its own and market current situation,this thesis conducts the following research:First of all,the research makes a summary and reference for current research situation and successful experience concerning corporate working capital management at domestic and abroad.Second,on grounds of the integratation of the experience and epistemology learned from reading the thesis and the research ideas of this thesis,when studying the working capital management of TG Refractories Company,we choose to cut from the profitability,liquidity and risk,and summarize the problems.Thirdly,efforts were made to evaluate TG Refractories Company’s performance in the management of working capital,the process has utilized the AHP and fuzzy comprehensive evaluation method one after another.In accordance with the weight stipulated by AHP,profitability should be considered the foremost influence factor of TG Refractories Company’s working capital management performance,which is of the same importance with liquidity and risk.As proved by the scores obtained by fuzzy comprehensive evaluation method,it is concluded that the overall working capital management performance of TG Refractories Company is average,it also shows favorable profitability in working capital management,general liquidity,and poor risk.Combining the evaluation results with the current company’s working capital management,and summarizing a series of problems that need improvement from three levels,such as the excessive scale of credit sales,irregular process operations,unreasonable use of business reputation,and insufficient monetary capital holdings.Finally,according to the company’s own characteristics,it makes targeted specific recommends to evelute the working capital management performance of TG Refractories Company in terms of profitability,liquidity and risk.The research provides suggestions for TG Refractories Company to ascertain itsperformance in working capital management,and helps decrease the blindness in corporate promotion process and have a positive impact on the company’s working capital performance improvement.