Research On Working Capital Management Performance Of M Household Appliance Company Based On Channel Theory

With the gradual maturity of the household appliances industry,the consumer market is becoming saturated.Under the circumstance of "price war",it is difficult to bring more market share for enterprises.At the same time,there may be risk of reducing profit space.Facing the global economic turbulence,it is very important for enterprises to win a place in the market competition and improve the efficiency of working capital management.M home appliance company,as a domestic old household appliance manufacturing enterprise,has implemented strategic cooperation in recent years,adjusted the business of the enterprise,tried to break through the bottleneck of development,but the operation performance has not been significantly improved,and it is necessary to realize the importance of working capital management.Enterprises should start from their own development strategies,find out the problems in the process of working capital management in time,strengthen the effective management of working capital,improve daily production and operation,and improve the core competitiveness of enterprises.Firstly,the paper expounds the background and significance of working capital management,summarizes the main research results of working capital management at home and abroad,and introduces the related concepts of working capital and the methods of performance evaluation.Taking m home appliance company as the case study object,the annual report data of 2015-2019 is selected to analyze the basic situation and financial situation of the company,and analyzes the performance status of working capital management from the channel theory.Secondly,we should build a new performance evaluation system of working capital management,and determine the performance evaluation index of working capital management from the perspective of channel theory,taking into account the production and operation status of industry and M company;The analytic hierarchy process model is established by the analytic hierarchy process,and the weight of each index is calculated;Taking the US company with good development status in the industry as the reference,calculate the evaluation indexes in 2015-2019,take this as the standard value of performance evaluation,grade the indicators of company M,and take into account the weight of each index,and get the final evaluation results of working capital management.Through the analysis of the evaluation results,we can see that there are problems in working capital turnover in all links of the enterprise,the efficiency of capital use is low,the R&D innovation effect is not significant enough,and the profitability is not strong.Finally,in view of the problems existing in the management of working capital,the paper puts forward countermeasures and suggestions from the aspects of purchasing,production and sales.Compared with the performance evaluation method of working capital management based on channel theory,the performance evaluation of working capital management based on channel theory is more consistent with the development and change of enterprises,more targeted and scientific.In the future,it can be used for reference for other enterprises to improve their working capital management.