Research On Working Capital Management Of GZ Company

Working capital is the foundation of a company’s survival and development,and it is also the most liquid capital that runs through various aspects of production and operation activities.Effective management of working capital can improve capital utilization efficiency,reduce financial risks,and provide necessary financial security for the development of enterprises.In today’s era,the fashion industry’s market has long become a red ocean.With the continuous acceleration of product iteration speed and the sustained downturn of the economy,the post-pandemic era has caused many fashion enterprises to face a series of predicaments,such as inventory backlog,supply chain disruption,and weak terminal sales,and uncertainty risks have also increased.Therefore,if garment enterprises want to stand out from the fierce competition and improve their own competitiveness,they must pay more attention to the management of working capital,improve the efficiency of capital turnover and the ability to avoid risks.This thesis takes GZ Company,whose main business is casual apparel and children’s apparel,as the research object,and selects the financial data of the enterprise from 2017 to 2021 for the study.First,we understand the basic operation of GZ Company,and at the same time,we analyze the current situation of working capital management of GZ Company from four perspectives: total,structure,efficiency,effectiveness,and security.Secondly,the specific problems of working capital management in GZ Company were identified as: inventory backlog,slow turnover of accounts receivable,and poor working capital efficiency,and then the causes were analyzed one by one and found that: inventory backlog was due to slow feedback from the supply chain,slow turnover of accounts receivable was due to imperfect credit management,and poor working capital efficiency was due to unreasonable working capital allocation.Again,in view of the above-mentioned problems and causes,this thesis provides corresponding solutions for GZ’s working capital management: firstly,strengthening the supply chain management,secondly,improving enterprise credit management,and thirdly,scientifically allocating the cost structure of the working end.Finally,we summarize the analysis and research on GZ’s working capital management,and look forward to the future research direction of GZ’s working capital management to rise to the level of enterprise operation management.