Author(s)

Zengqiang Song, Yongping Niu

Corresponding Author

Zengqiang Song

Abstract

With the rapid development of China's socialist market economy, working capital management plays an important role in modern enterprise financial management. Most of the domestic and foreign scholars' research on modern financial theory revolves around long-term financial policies. However, a dramatically increasing number of enterprise managers are willing to spend more time managing the working capital from the perspective of enterprise practice. The quality of working capital management is directly related to the development of the enterprise. In this work, the case of enterprise operating fund management was selected as the research object, and the research was carried out in accordance with the logic of "case analysis-discovering problems and causes-proposing countermeasures and suggestions". Through the data collection and calculation analysis, it can be seen from the comparison between the working capital management and the selected listed enterprises that the enterprise has certain financing risk and debt-paying risk. Also, the internal borrowing of enterprises takes up excessive funds, and the enterprise's commercial credit utilization and the enterprise's accounts receivable management strength is not enough. The above problems are caused by market factors and the influence of the financial environment. It also includes the lack of working capital management concept, imperfect internal working capital management system and means, and the lack of a sound internal working capital management performance evaluation system. To this end, this work put forward that every employee should establish a new concept of working capital management. A series of measures were proposed, such as optimizing the internal structure of the enterprise, establishing the working capital guarantee system of the enterprise, improving the efficiency of working capital, etc. Hopefully, it will offer theoretical support for the research of working capital management.

Keywords

Working capital, Working capital management, Risk management