Enterprise Working Capital Management Study

Working capital management mainly involves the appropriate amount of working capital and the best way to finance. According to the working capital policy , for achieving the best management effect, these two facets must be considered jointly. In the process, we should consider the time which assets(except cash) convert to cash and the stability level of the conversion ratio. The company which make the policy of working capital on the run may be influenced by many factors such as the product marketing channel, the management environment, the condition and the manager's idea. The major purpose is to maximize the enterprise value ,so in the management of working capital our decisions mainly take two facets into consideration :1.The optimal level investment in current assets.2.How to make appropriate short-term financing. The company's working capital policy designing center around optimal policy and financing policy.The enterprise Working capital risk included cash receipts and disbursements risk, account receivable credit risk, inventory's occupying risk and the financial crisis which the unreasonably capital structure brought. To remove these risks the first thing is to build perfect effective financial risk control mechanism, which is the key to reduce financial risk. The risk control work should be done well beforehand, in the matter and the afterwards .Moreover the most effective method which avoid the capital operation and the fund management risk is to establish the finance early warning system, strengthen the finance crisis management .Carry on the track, the surveillance to enterprise's capital operation process, through to financial report form and financial norm analysis, once discovered some kind of unusual indication start to action to avoid or reduce the risk loss. Second we must set up the good faith to manage finances .The enterprise should persist the good faith, which is not only helpful to the enterprise in the brand, the industrial chain and the ecological environment ,obtains the competitive advantage, but also reduces the risks .Strengthen credit chain, maintain the normal social economy order, make the enterprise obtain a good exterior atmosphere and operation well, only then possibly realizes the enterprise profit maximization to achieve the goal.The enterprise manages moves whether coordinates, in view of financial , is refers to various links of the enterprise service, including investment financing, production, purchase, sale, fund payment and settlement and so on, the Interco ordination between its fund occupying and the fund originates .This kind of coordination, not only requests the maintenance of static state for a while , but also requests in some period maintains the dynamic coordination, which obtains from working capital demanding, the special details of the working capital and the specie payment ability.