Working Capital Management Of G Company From The Perspective Of Enterprise Life Cycle

Working capital is the "blood flow" of an enterprise,which runs through the whole process of enterprise operation and provides continuous vitality and vitality for the normal operation of enterprises.With the deepening of research,more and more scholars began to introduce "business life cycle" into the field of working capital management,breaking through the traditional working capital management ideas,and establishing a new working capital management method in line with the modern economic environment.Faced with the slowdown of economic growth at home and abroad,the traditional electric manufacturing industry has been strongly impacted and the overall development state is depressed.According to a survey,corporate finance managers spend 60% of their time on working capital management.It can be seen that the core content of working capital management is the management of fund utilization and fund raising.As a big manufacturing country in China,home appliance manufacturing industry occupies a pillar position in the manufacturing industry.At present,the production scale of China’s home appliance industry has ranked first in the world,and it is one of the industries with strong international competitiveness.It can be seen that the development of home appliance industry is related to the development of China’s manufacturing industry,and the working capital management of enterprises is a key factor for the survival of enterprises.Enterprises must pay attention to their own health problems.Many enterprises have to go bankrupt due to the break of the capital chain,and the fundamental reason is that the working capital management concept of enterprises is backward.As a result,enterprises waste a lot of funds and cannot repay maturing debts.In such an economic environment,enterprises from the perspective of life cycle to seek to improve the level of working capital management,can be regarded as an effective way to help themselves through difficult times.Based on the theories of enterprise life cycle and working capital management,this paper selects G company as the research object.Firstly,the working capital management of G company was studied,and based on the factors and channels,the changes of various indicators of G company in different life cycles were analyzed,and the performance of its working capital management was comprehensively evaluated.Then,through the research found G company working capital management problems.Finally,combining these problems from the perspective of enterprise life cycle,put forward the corresponding optimization suggestions,such as,in the initial stage of the establishment of information sharing platform with suppliers;Implement scientific and effective incentive system and staff assessment standards in the growth stage;In the mature stage,develop new marketing forms,optimize the supplier management system,in addition,strengthen the friendly cooperative relationship with dealers,improve the inflow of working capital.Through the case study of G company,it is found that the enterprise life cycle has a direct impact on the company’s working capital management.It is hoped that this research can enrich the practical experience in this field and provide reference value for Chinese household appliances enterprises to promote working capital management from the perspective of life cycle.