Research On Accounts Receivable Quality Of Manufacturing Listed Companies In China

With the increasingly competition in market, manufacturing listed companiesmore likely tend to issue the installments and credit sales as a payment in order to ad-apt the buyer market. Only in this way, could they attract new customers to advancesales profits and extend the share of market. It is certain that the credit sales would le-ad to some negative effects such as larger amounts of receivable accounts, smalleramounts of cash for making a turnover and sustainment, and higher risk of bad debts.In addition, the average rate of bad debts up to10%of China’s enterprises, muchhigher than0.5%of the U.S. and European companies. Manufacturing listedcompanies in the face of tightening market, trying hard to improve the receivablesquality will improve capital efficiency and adequacy, will ensure the sustained andhealthy development of enterprises. Therefore, study on the receivables quality of themanufacturing listed companies is practical significance, by analyzing the accountsreceivable management problems and to take timely targeted improvement measures.In this paper, by summarizing the receivables quality evaluation methods andindex, will build a manufacturing listed companies receivable quality evaluationsystem with six key indicators of the three dimensions. Under the guidance ofreceivables quality evaluation system, the paper will analyze the Shanghai StockExchange listed104manufacturing company’s accounts receivable quality to find outthe main problems. Furthermore, the listed companies of the manufacturing quality ofthe receivables above give targeted recommendations for improvement. Overall, themanufacturing listed companies should strengthen innovation research and buildingbrand to enhance the enterprises competitiveness, and make sure the enterprises dobetter in the comprehensive process control of accounts receivable, to improvecustomer credit rating and credit management mechanism, to build the manufacturinglisted companies accounts receivable information management system.