Research On The Correlation Between Working Capital Management And Profitability Of Household Appliance Enterprises

This paper uses the financial data of listed home appliance companies in Shanghai and Shenzhen as the research sample.First,the method of descriptive statistical analysis is used to describe the current status of working capital management of listed home appliance companies and analyze the situation of related industries,and then select appropriate variables.,Build a model,and use multiple regression analysis to analyze the correlation between them and the profitability of the company from two aspects of operation management policy and efficiency.In the face of increasingly fierce domestic and foreign market competition and complex environmental changes,working capital management,as an important part of corporate management,becomes more and more important in dealing with fierce market competition and complex external environmental changes.From the results of descriptive analysis in this paper,the implementation of working capital management policy of household appliance enterprises has different preferences in different enterprise management levels,and the speed of management efficiency is also very different in different enterprises,which can also reflect the difference in the overall management level of household appliance enterprises.From the results of the empirical test,through the empirical test of the four hypotheses proposed in this paper,the final result is:the regression result of model 1 is that the more radical the managers’ preference for working capital management in the holding level of current assets and current liabilities,the worse the profitability of the enterprise,which is completely opposite to hypothesis 1 proposed in this paper.In the model two regression analysis,of the other three hypotheses proposed in the article,only the empirical results of hypothesis 3 are basically consistent with the proposed hypothesis views,and the empirical results of the other two hypotheses are consistent with the research hypothesis conclusions,but they are not significant.The empirical results of Listed Companies in Shanghai and Shenzhen household appliance industry show that the enterprise’s management of working capital needs to reasonably arrange the appropriate total amount of current assets and current liabilities according to the enterprise’s own situation.The management of accounts receivable,inventory and accounts payable should reasonably arrange the internal structure ratio of working capital on the basis of balancing income and risk.Finally,the paper puts forward relevant countermeasures and suggestions on the management of working capital,hoping to be helpful to enterprises.