Research On Working Capital Management Of Hengshun Vinegar Industry Based On Value Chain

With the rapid development of economic globalization,the market competition among enterprises is gradually fierce.Traditional working capital management only studies individual indicators and elements in financial statements and cannot find out the deep-seated problems in enterprise operation.With the gradual application of the value chain theory in the operation and management of enterprises,the working capital management is more from the perspective of the stakeholders of the value chain,and takes the value-added part of the internal and external links of the enterprise as the consideration factor,in order to achieve the maximum value of the enterprise.In recent years,condiment industry market scale is expanding,but the concentration is not high,condiment enterprises want to achieve stable operation,improve the comprehensive competitiveness,improve the level of working capital management is the top priority.In the competition pattern of Chinese vinegar industry in 2021,Hengshun Vinegar industry occupies the first place in market share.This thesis takes Hengshun Vinegar Industry,a representative listed company in the condiment industry,as the research object.Starting from the perspective of value chain,starting from the three links of internal procurement,production and sales as well as external suppliers and customers,based on literature research,the financial index analysis method is integrated into the case study,and compared with the average level of the industry and peer enterprises,to carry out an in-depth study on Hengshun Vinegar’s working capital management based on the perspective of value chain.Finally,the thesis finds out the problems and causes of Hengshun Vinegar in each link of working capital management,and puts forward corresponding suggestions based on the operation situation of Hengshun Vinegar industry.The study found that the working capital management level of Hengshun Vinegar industry in the procurement link is higher than the industry average,because Hengshun occupies a large amount of suppliers’ funds in the procurement link.Hengshun Vinegar industry in the marketing link working capital management level is obviously worse than the industry,accounts receivable and bad debts are more,and the turnover speed is slow.The existing problems of the company mainly include weak awareness of value chain management,low efficiency of working capital management,low market share and high proportion of capital occupied by raw material inventory.We can optimize the sales channels,improve the working capital management mechanism,improve the relationship with suppliers,reduce the inventory backlog and other ways to improve the working capital management level of each link of the company’s value chain.It is hoped that the research of this thesis can provide some reference suggestions on working capital management for other companies in other condiment industries and promote the better development of condiment industry.