Research On The Performance Of Working Capital Management Of A Company Based On Channel Theory

Working capital is closely related to the supply,production and sales of enterprises,and good working capital management activities can not only meet the capital needs of enterprises,but also promote the development of corporate profitability.Under the situation of global economic integration and the new normal of domestic economy,the complexity of the international and domestic environment and the fierce competition in the industry of home appliance enterprises,it is especially important to carry out high-level working capital management.Traditional working capital management and performance assessment methods cannot adapt to the requirements of economic development,and home appliance companies need to make changes to improve the overall competitiveness of the enterprise.As a member of home appliance company A,the only way to enhance the working capital management is to strengthen the working capital turnover capacity,keep the normal production and operation with low working capital cost,and improve the efficiency and profitability of the enterprise.The thesis takes Company A in the home appliance manufacturing industry as the research object,and uses the channel theory,literature research method and comparative analysis method to analyze its working capital management performance.The paper is divided into four parts.Firstly,the background and significance of the study are explained,the main research results on working capital management at home and abroad are summarized,and relevant concepts and theoretical foundations are introduced.Secondly,Company A’s annual report data from2017 to 2021 are selected,and on the basis of clarifying the basic situation of the company and the current situation of working capital,the current situation of working capital management of Company A is highlighted from three aspects: procurement channel,production channel and sales channel,and compared with Haier Zhijia and Gree Electric,and it is found that Company A’s working capital management has certain advantages in the production channel,while the enterprise has finished goods At the same time,the company has problems such as backlog of finished goods and large accounts payable.Again,we use hierarchical analysis to construct a reasonable working capital management performance evaluation system,determine the evaluation index weights and scores,and evaluate and analyze each performance index,and find that the working capital turnover of each channel has problems such as excessive use of commercial credit,low turnover rate of accounts receivable,and backlog of finished goods inventory,etc.Finally,in response to the problems of different channels,we propose the rational use of commercial credit in the procurement channel,strengthen the management of suppliers’ inventory Finally,in response to the problems of different channels,we suggest that the production channel should strengthen production and planning management and increase R&D investment;the sales channel should change its sales forecast,improve customer relationship and strengthen the control of receivables.