Research On Working Capital Management Of SDHH Companies Based On Value Chain

With the continuous development of China’s market economy,the competition among enterprises is becoming more and more fierce,and the survival pressure is increasing.The role of working capital management is becoming increasingly prominent.In the traditional working capital management,most of them are structural management,which focuses on the best holding of the company’s current assets,current liabilities and other items.There is a lack of overall analysis on the working capital management,which is not conducive to the overall development of the company.In recent years,people pay more and more attention to the problem of value chain,and it is widely used in practice.The combination of working capital management and value chain is to manage working capital from the perspective of enterprise development strategy and analyze its effect on production and operation from the macro level.The current working capital management enables enterprises to allocate resources reasonably,enhance their cash flow value-added ability,improve their core competitiveness and maximize their value.This paper uses qualitative analysis and quantitative research methods to study the working capital management of SDHH company.This paper is divided into six parts: the first part analyzes the research background and significance of working capital management.On the basis of summarizing the latest theoretical research of experts and scholars,this paper provides theoretical support for the writing of this paper,puts forward the research content and research methods of this paper,and further explains the characteristics of this paper.The second part mainly introduces the working capital,working capital management and value chain theory and other related concepts and theories,which provides the theoretical basis for the following article.The third part introduces the general situation of SDHH company and the value chain.First of all,it introduces the company’s brief introduction.Secondly,it describes the company’s financial situation from the aspects of assets and liabilities,profitability index,Solvency Index and operation efficiency index.Finally,it describes the company’s value chain overview and the company’s upstream and downstream customers.The fourth part mainly analyzes the working capital management of SDHH company based on the value chain.This paper first analyzes the general situation of working capital management,and briefly introduces the basic situation of working capital management of the company from three aspects: current assets,current liabilities and return on net assets.The net working capital of SDHH company is positive.The current assets of SDHH company are greater than current liabilities,and its debt paying ability is better.Secondly,it analyzes the working capital management of SDHH company based on internal and external value chain,This paper elaborates from five aspects of procurement,production,marketing,suppliers and customers,and then makes a horizontal comparison of SDHH company.Finally,it explains the possible problems and causes of the enterprise from two aspects of internal and external value chain.At present,there are some problems in SDHH company,such as accounts receivable project management is not strict enough,accounts payable occupied too much,finished product inventory backlog,liquidity management concept is not in place.The fifth part puts forward the optimization suggestions from the internal and external aspects of the company,including the following aspects: SDHH company reasonably applies the business credit of enterprise accounts payable,widens the sales channels,improves the management system of users and suppliers,optimizes the enterprise procurement process and production process,enriches the management mode of accounts receivable,and finally improves the management efficiency of the company.The sixth part summarizes the full text and expounds the limitations of this paper.