Research On Working Capital Management Of Changyu From The Perspective Of Factors And Channels

Affected by the epidemic,the market economies of various countries have been hit to varying degrees in recent years,and the competition situation of various industries in China has also intensified.More and more enterprises continue to improve their competitiveness through digital transformation and industrial empowerment to deal with various market risks.In the current economic situation,how to improve the efficiency of capital use to promote business activities and bring better benefits has become the concern of many enterprises.As a part of the enterprise’s operating capital,it can directly reflect the liquidity of the enterprise’s operating capital.From the perspective of production-oriented enterprises,the limitations of the working capital management evaluation system from the perspective of traditional factors in practical application are becoming increasingly prominent.Because when analyzing the working capital management level of an enterprise from the perspective of factors,the focus is usually on comparing the performance of an isolated index of the target enterprise with that of the same industry,and how to adjust an index to the best range through regulation.This working capital management model from the perspective of traditional elements is easy to ignore the differences of business processes of different types of enterprises and the actual relationship between various project elements,so it is difficult to evaluate the working capital management level of enterprises as a whole.After realizing the limitations of the traditional working capital management theory,domestic scholars have also made some innovative attempts by learning from foreign research results.The most representative in recent years is Professor Wang Zhuquan,who introduced the channel perspective into the research of working capital management,and designed a new performance evaluation index system,which gives a new entry point for the performance evaluation of working capital management.At the end of 2012,the restrictions on "three public consumption" stipulated in the eight provisions of the central government as the fuse triggered the comprehensive adjustment of China’s brewing industry.At the same time,in recent years,relying on China’s foreign trade preferential policies,foreign imported wine has continuously occupied the market,the internal beverage wine sub categories of China’s brewing industry have been continuously adjusted,and there has been an obvious trend of industry differentiation.China’s wine production enterprises are facing great difficulties in the brewing industry market.However,in the long run,the brewing industry still has great potential in domestic and foreign markets and plays a strong driving role in China’s agricultural economic development.Therefore,it has been strongly supported by national policies in recent years.Changyu in Yantai,Shandong Province,as an old domestic wine production enterprise,ranks first in terms of production and sales all year round.In recent years,it is also expanding and transforming through the acquisition of wineries at home and abroad,but the decline in performance has exposed some problems in Changyu’s production and operation activities.Changyu is selected as a research case to explore the problems existing in its working capital management from the perspective of elements and channels,analyze the causes,and give suggestions and countermeasures,which has a certain reference value for other small and medium-sized enterprises in the industry.Based on the channel management theory,working capital management theory and other relevant theories,after consulting and combing the previous research results at home and abroad,based on the dual perspectives of elements and channels,using the methods of index analysis and comparative analysis,this paper collates and calculates the company’s annual report and financial data of Changyu in recent five years,and analyzes the current situation of its working capital management in combination with the situation of its industry.In the analysis,it is found that its working capital management efficiency has a significant downward trend in recent two years,and there are the following problems: too long occupation of upstream supplier funds,serious backlog of in-process products inventory,bad debt risk in marketing channels,and the proportion of short-term loans in current liabilities continues to increase.Among them,the problem of Changyu’s production channel working capital management is relatively serious.After analyzing the causes of the above problems in combination with the data,the following suggestions are put forward: the procurement channel should standardize the use of commercial credit,and pay attention to the information sharing and cooperation with suppliers;Improve the existing inventory management mode of in-process products through production channels,and move towards lean production process according to the market;Strengthen customer relationship management in marketing channels and accelerate digital transformation;Establish a channel information sharing platform internally and form a channel alliance externally.The main contribution of this paper is to integrate theory with practice,analyze the current situation of Changyu’s working capital management from the perspective of elements and channels,and make it clear that the research on working capital management based on the perspective of channels is scientific and practical.However,there are some deficiencies in the analysis: first,during the writing of this paper,Changyu’s 2021 annual report has not been disclosed,and the analysis results may be different from the current financial situation of the enterprise.Secondly,this paper selects Changyu,a listed wine production company,as a case study,which is one-sided.Considering the special situation that wine production enterprises are greatly affected by the epidemic,this result may not be applicable to all production-oriented enterprises.Finally,most of the financial data in this paper are from the annual report of Changyu enterprises,and some chapters may lack some internal data to discuss in detail.