Research On Working Capital Management Of M Company From The Perspective Of Elements And Channels

In recent years,due to the impact of the epidemic,the market economy of many countries in the world has been impacted to a certain extent.In China,the competition situation of various industries has also become more intense.More enterprises have begun to use digital transformation,industrial empowerment and other means to continuously improve their competitiveness and effectively deal with various market risks.In the current economic environment,how to improve the efficiency of capital use to promote the development of business activities and bring greater benefits to enterprises has become a topic of concern for many enterprises.Among them,working capital management is an important part of enterprise financial management,which plays a very positive role in ensuring the normal production and operation of enterprises.Working capital is the most liquid part of the enterprise’s capital.The level of working capital management can directly reflect the various problems in the enterprise’s operation process.The analysis of working capital management can be carried out from the perspective of elements and channels.From the perspective of elements,although the method is simple and can accurately grasp the three "points",namely accounts receivable,accounts payable and inventory,it has the disadvantages of separation and contradiction of elements.From the perspective of modern channels,the working capital in business activities can be divided into three channels:procurement,production and marketing.It can link up every "point" in the working capital management elements,and become the "line" of business activities,which can better make up for the gap in the perspective of elements.Combining the factor perspective with the channel perspective,we have achieved the goal of moving from "line" to "plane",and insight into the essence of enterprise capital operation from "horizontal" and "vertical" levels,so that we can clearly see that each link is interrelated and affects each other,thus establishing the overall framework of working capital management.This paper takes M Company in the food industry as the case background company to analyze the management of working capital.First,evaluate the effect of working capital management from the perspective of factors and channels.Then,combined with relevant theories,the current situation of working capital management of M Company was carefully interpreted from the perspective of factors and channels,and based on relevant data and questionnaire survey results,the main problems existing in the management level were proposed: First,the relationship between channel members was unbalanced.Second,accounts receivable accounted for a high proportion of bad debt risk.Third,inventory management level declined.Fourth,short-term debt repayment risk was high.Fifth,the working capital management system is not perfect.Finally,from the dual perspective of system construction,relationship between channel members,accounts receivable control,inventory management,financing structure and other aspects,the paper puts forward corresponding suggestions to improve the management level of working capital.This paper combines the factor perspective and channel perspective,and provides more thinking lines for enterprises to carry out working capital management in theory.In practice,it puts forward some suggestions for improving the working capital management of M Company,and provides reference and reference for enterprises in the same industry.