Research On Working Capital Management Of China’s Automobile Dealers

Working Capital is the foundation of daily business activities of China’s auto dealers, the level of working capital management will affect the funding level of profitability directly in a certain period.Therefore, strengthen working capital management of China’s auto dealers is the internal requirement in order to adapt to the intense market competition, improve the overall profitability, enhance internal core competitiveness, and seek the steady development of the inherent requirements.Firstly, automobile dealers should change the concept of working capital management, formulate scientific and rational financial management system, broaden the financing channels, improve business credit rating, enhance inventory management and improve capital efficiency. In addition, they also need support in the commercial policy of the automobile manufacturers and commercial banking and other affiliates, as well as the correct guidance of the automotive industry of the government.On the basis of theoretical analysis on the auto dealer working capital management, this paper describes the current situation of working capital management of China’s auto dealers, makes a more detailed investigation and study, and access to a large number of domestic and international working capital management information, analysis and summaries the problems in working capital management. In the case, the paper describes X company’s working capital management status, and makes a in-depth analysis of its problems, the actual situation of the dealers in the working capital management, current assets, current liabilities, as well as financing channels and related theories are linked together, it proceeds from the profitability and risk of the working capital, elaborates and analysis, put forwards some management policies and measures to improve the working capital management of China’s auto dealers.