Enterprise Working Capital Management Research

Working capital has great contact with other capital in any enterprise, permeateing every sector of enterprise's production and operation. At the same time, the level of working capital management can decide the capacity of enterprise' profit; the management of working capital is the fundamental of financial management. So we have to pay great attention to working capital management.But great gap exists between our enterprises and foreign enterprises in working capital management. We can draw lessons from their experiences, and combine with our enterprise's present situation, in order to improve management of working capital.In the first chapter, it introduces the important of working capital management and the present research condition, emphasizing the two problems in working capital management: item management and structure management.In the second chapter, it introduces the concept of working capital and three directions of working capital management, including: risk concept, cost concept and profit concept.In order to solve the two problems, which put forward in first chapter, we make with a detailed account in item management of working capital in third chapter and structure management of working capital in the fourth chapter. By the item management of working capital, it can improve the speed of working capital turnover, reducing the occupancy of capital and the cost of short capital. By the structure management of working capital, it can keep the balance of all kinds assets and liability , optimizing the capital structure.In the last chapter, we combine the item management of working capital with the structure management of working capital, pointing out the relationship between the above two aspects. It also introduces the zero working capital management, and gives an example about Hair's zero working capital management to prove the effect of zero working capital management.