Study On Performance Evaluation Of Working Capital Management In Household Appliance Industry

Home appliance industry is an important pillar industry of our national economy.The current increase in the price of raw materials(copper,aluminum,etc.)in the home appliance industry has led to an increase in production costs for home appliance companies;in addition,smart home appliances are now the new direction of development in China’s home appliance industry,which requires home appliance companies to further increase their R&D investment.The above two reasons have intensified the demand for capital from home appliance companies.To solve this problem,home appliance companies should not only make good financing arrangements,but also pay more attention to working capital management.The evaluation of working capital management performance is the first step to identify the weaknesses of working capital management and determine the priorities for improvement.Based on the above reasons,this paper summarizes the theoretical research and practical application results of working capital management by domestic and foreign scholars,and quantitatively evaluates the working capital management performance of the home appliance industry by taking listed companies in the home appliance industry in China as the research object.First,based on the actual situation of working capital management in the home appliance industry,this paper selects 12 working capital management performance evaluation indexes in the home appliance industry based on the supply,production and marketing links,focusing on the logistics and capital flow of enterprises,and based on the principles of comprehensiveness and importance,scientificity and external generalizability.Second,collect the financial data of 32 sample companies for five years(2017～2021)and based on the selected 12 indicators,three main factors of working capital profitability factor,liquidity factor and risk factor were extracted by factor analysis method,and then the weights of the sub-indicators under each main factor were determined by entropy weighting method,thus the working capital management performance evaluation model of the household appliance industry was constructed,and then the working capital management performance of the sample companies in terms of profitability,liquidity and risk were calculated by the constructed model.Finally,we analyze the working capital management performance of the sample companies by combining the quantitative measurement results of working capital performance management in the home appliance industry to find out the shortcomings of working capital management in the industry as a whole,and analyze the supply,production and sales model and working capital management performance of FLYCO as a case company.Finally,based on the analysis results,we propose strategies to improve the working capital management performance of the home appliance industry.This paper enriches the content of working capital management research,enriches the case support for working capital management performance evaluation research in home appliance industry,and has certain reference value for improving the working capital management performance of home appliance industry enterprises.