Research On The Performance Of Working Capital Management Of G Company

In recent years,China’s economy has developed from rapid growth to high-quality growth.With the continuous upgrading of energy,fuel vehicles are gradually replaced,new energy vehicles have begun to receive more and more attention,and their development trend is getting better and better.As one of the main products of many automobile companies,new energy vehicles have brought more opportunities for the development of automobile enterprises.As one of the important references to measure the profitability of enterprises,working capital management capabilities have a profound impact on the development of enterprises.If the working capital is not properly managed,it is easy to cause the company’s capital chain to break,which will lead to the bankruptcy and bankruptcy of the company.Company G is a well-known Chinese car company,and its production activities occupy a large amount of working capital.Therefore,whether the working capital holdings are sufficient,whether the utilization efficiency is reasonable,and whether the structure allocation is appropriate has a non-negligible impact on whether G Company can operate stably.For the healthy and long-term development of the enterprise,G Company needs to pay more attention to working capital management.This paper takes Company G as the research object for analysis,and uses comparative analysis method,literature research method and entropy weight method to discuss the performance of working capital management.First of all,read the domestic and foreign literature on working capital management and working capital management performance evaluation,clarify the research content and research ideas of the paper,and explain the relevant concepts and theoretical foundations.Secondly,the paper introduces the current situation of the automotive industry and the overview of Company G,and analyzes the overall scale of Company G’s working capital,monetary funds,accounts receivable,accounts payable and other items,so as to grasp the current situation of its working capital management.Thirdly,the paper selects liquidity,profitability,risk and cash flow related indicators,constructs the performance evaluation index system of Company G’s working capital management,and uses the entropy weight method to calculate the weight and evaluation value of each evaluation index.This paper selects four automobile companies with different market shares to conduct horizontal comparative analysis with G Company,and conducts longitudinal comparative analysis of G Company evaluation data from 2017 to 2021.Through analysis,Company G has problems in working capital management,such as large short-term debt repayment risk,slow turnover of accounts receivable,large proportion of accounts payable,lack of monetary capital control,and unreasonable working capital allocation.Finally,in view of the existing problems in the working capital management of Company G,this paper puts forward improvement countermeasures from five aspects: establishing a debt repayment risk control mechanism,improving the accounts receivable management system,strengthening the accounts payable management system,strengthening the supervision of monetary funds,and improving the management of working capital allocation.