Research On Improvement Of Working Capital Management In C Steel Limited Company

With the overcapacity of iron and steel industry since 21^stCentury,the iron and steel market continues to slide,the iron and steel industry suffers great oversupply,the disordered competition is prominent,the market price continues downward and the steel enterprises are facing great losses.The supply side structural reform of reducing excess inventory,cutting overcapacity,deleveraging,lowering costs and strengthening areas of weakness has officially launched by the end of the year 2015,which is both an opportunity and challenge for iron and steel industry.But on the whole,under the big background of complex international situation and low speed growth of the world economy,the steel industry has basically entered the adjustment stage of in-depth transformation.Working capital is an indispensable and essential part for the development of an enterprise,which involves procurement,production and marketing of an enterprise and is an important part of the enterprise assets.Management of working capital directly affects the success of enterprise operation.Because of the large fund occupation amount,low profit rate and other industry characteristics,the working capital in iron and steel enterprises are different from other general industries and so the management means are not the same.However,due to long term extensive management of some iron and steel enterprises,it is urgent to deepen the channel type working capital management with the practical application of channel theory.This paper starts with the analysis of current situation of working capital management,analyzes the working capital management efficiency at present and points out the existing problems in the management of working capital under current methods through the current analysis of working capital management,based on the example of C Iron and Steel Co.,Ltd.On the basis of the channel theory,this paper divides the working capital into three links,namely,procurement,production and marketing and then analyzes the working capital management and points out the existing problems of enterprise capital management under the framework of channel working capital management analysis.It puts forward a series of improvement and optimization suggestions to help enterprise to realize the transformation from traditional capital management to modern enterprise capital management,search for innovative development model,improve financial management situation,improve the operation level of assets,enhance the debt service ability so as to them to change the situation and realize the upgrading of the products.