Study On Performance Evaluation Of Shanghai Electric Power Working Capital Management

Working capital management is the main component of enterprise financial management,is the link to maintain the survival and development of enterprises.Economic globalization accelerates international capital flow,and market risks and opportunities also increase.Working capital is flexible and efficient,and plays an important role in connecting and promoting enterprises’ daily operations,which makes working capital management increasingly prominent.At the same time,the academic circle gradually paid attention to the research topic of working capital management,and the research on working capital management at home and abroad showed a significant growth trend.The research shows that a good working capital structure can help enterprises take advantage in the fierce market competition,promote capital turnover and improve the ability to generate income.The electric power industry is the basic energy industry and has the characteristic of capital intensive industry.With the acceleration of the construction of the power market system,the power generation enterprises in the monopoly position are also facing fierce competition,but the internal power generation enterprises fail to change the management concept in time,pay insufficient attention to working capital management,and often face the problem of slow capital turnover,high financial risk,and there are big problems in working capital management.It is an effective measure to enhance the competitiveness of power generation enterprises and ensure the steady development of power enterprises to make accurate evaluation of the performance of working capital management,which is helpful to increase the importance of working capital management,help enterprises to adjust the structure of working capital and improve the management level of working capital.This paper first summarizes the literature research on working capital management,understands the latest theoretical research trends,summarizes working capital performance evaluation methods,and lays a theoretical foundation for the following paper.Secondly,Shanghai Electric Power Co.,LTD.,a representative enterprise in the electric power industry,is selected as the research object,and the financial data of five consecutive years from 2016 to2020 are selected to analyze the current status of the performance evaluation of its working capital management,and the limitations of the current evaluation methods and evaluation effects are found.In order to construct a reasonable working capital management performance evaluation index system,the corresponding improvement measures are put forward according to the problems.Evaluation system of combining the theory of supply chain management and channel management theory,the integrated use of entropy method and the efficacy coefficient method,from the harmonious sex profitability,liquidity,security,and the four aspects of case enterprise working capital management performance evaluation,from the enterprise internal financial operation and external interests relation,seek the path of ascension of working capital management performance from multiple perspectives.Through theoretical analysis and case study,this paper shows that the products of Shanghai electric power management belong to basic energy,which is greatly affected by the management system of planned economy in the past,and the capital management is relatively extensive.The main problems of working capital management are as follows: the excessive proportion of current liabilities leads to the poor security of working capital,the lack of stability of the relationship between enterprises and upstream suppliers,and the poor profitability of working capital.This paper puts forward some suggestions,including constructing information exchange platform to strengthen supplier relationship management,broadening financing channels and strengthening enterprise risk control system to adjust working capital structure,strengthening management of other funds and strengthening enterprise internal management consciousness,etc.