Research On Working Capital Management Performance Of Bayi Steel Based On Entropy Weight Method

China’s national economic development has always been inseparable from iron and steel enterprises,in recent years,the overall overcapacity of iron and steel enterprises,supply exceeds demand,leading to the continuous decline of economic profits of iron and steel enterprises,making the economic development of the steel industry depressed.In order to solve this problem,the government has put forward the policy of "three cuts,one reduction and one strengthening",namely,the five tasks of reducing overcapacity,destocking,deleveraging,reducing costs and strengthening weak links.Under the continuous promotion of the national supply-side reform,the operation of the iron and steel industry has been steadily improving and achieved obvious results.However,iron and steel enterprises with high capital input and output density,long development cycle and large cash flow momentum of the particularity of its capital chain risk is higher than most industries,the demand for cash flow is large,more need to strengthen the management of the enterprise working capital.Therefore,Bayi Iron and Steel must pay attention to working capital management if it wants to obtain its long-term stable development in such a competitive market.This paper selects Bayi Iron and Steel as the research object.Firstly,it collects and sorts out the relevant research results of working capital management of iron and steel enterprises at home and abroad,and puts forward the research purpose and significance of this paper.Secondly,based on the introduction of the current situation of Bayi Iron and Steel’s working capital management,according to the sorted index data from 2015 to 2019,the performance evaluation index system of working capital management based on entropy weight method is constructed,the weight of each index is calculated according to the corresponding formula,and its comprehensive evaluation value is obtained.Respectively from the cash flow ability,profit ability,debt paying ability and cash flow comparative analysis of the four aspects of transverse and longitudinal longitudinal comparative analysis including of bayi steel index value of2015-2019,this paper compares and analyzes horizontal comparative analysis including bayi iron and steel and special steel,baosteel contrast analysis,finally,The study found that Bayi Iron and Steel Co.,Ltd.’s performance of working capital management declined including the following reasons: poor management of accounts receivable,unscientific inventory management,defects in monetary capital management,and inadequate management of working capital allocation.In view of the above reasons,four suggestions are given to improve the performance of working capital management of enterprises: strengthening accounts receivable management;Optimize inventory management mode,establish and form long-term competitive advantage;To improve the use efficiency of monetary funds,at the same time to determine their own best monetary holdings;We will strengthen the management of the distribution of working capital and implement unified allocation and reasonable division of working capital.