Research On The Working Capital Management Of Hisense Vision From A Three-dimensional Perspectiv

Working capital is the blood of the operation of an enterprise.If an enterprise cannot manage working capital effectively,it will not only bring immediate losses to the enterprise,but even bury hidden dangers for the long-term development of the enterprise.And for Chinese home appliance manufacturing industry,the importance of working capital management is becoming more and more significant.China is currently in a new round of development and transformation.In the background of supply-side reforms,Chinese home appliance manufacturing related businesses while constantly improve the innovation ability,but the overall profitability has declined.Industry competition,brand advantage,price war between brands,make home appliance manufacturing industry profits space narrowing.In such a situation,home appliance manufacturing enterprises must urgently improve their working capital management level.This paper selects Hisense Visual Technology Co.,Ltd,a senior enterprise in domestic household appliance manufacturing industry,as the research object,aiming to provide ideas for related enterprises to manage working capital,help them improve their comprehensive competitiveness and achieve high-quality development.Firstly,this paper analyzes the enterprise characteristics of Hisense enterprise and the industry characteristics of household appliance manufacturing industry,the evaluation indexes are determined from three dimensions of profitability,risk and liquidity,and then the analytic hierarchy process is used to determine the weight of each evaluation index in the evaluation system,and then uses the weights determined by the AHP to set the scoring standard valueof the improved Wall method,and uses the average value of the financial indicators of Chinese home appliance listed companies as the indicator standard value of the improved Wall method to quantify the company’s working capital management,and the early warning interval is divided to facilitate the judgment of enterprise working capital management.Finally,this paper deeply excavates the working capital management problems of Hisense by means of financial diagnosis,analyzes the internal causes of its working capital management,and puts forward countermeasures.Through the study found that Hisense risk level of working capital management level in A,B two floating,working capital management as A whole is valid,but lower yields of working capital in the profitability indicators,mainly caused by Hisense of operating profit is low.And Hisense’s earned interest multiples of risk indicators is low,and the index fluctuation is very big.This is mainly caused by the low net profit of Hisense.The above two points all indicate that Hisense’s ability to create value needs to be improved.Simultaneously,the long working capital turnover period of Hisense’s marketing channel is mainly caused by the high amount and proportion of Hisense’s receivables,indicating that Hisense needs to be more vigilant in the management of receivables.To sum up,Hisense should focus on improving its profitability,while strengthening the management of receivable projects and improving the utilization rate of funds to ensure the operation of the company.