Working Capital Reclassification And Study On Comprehensive Performance Evaluation

Working Capital is the funds which the enterprise must have to the day-to-day operations ofenterprises, is part of the enterprise all the assets in the most vigorous, so the working capital isoften regarded as the enterprise flow of blood. Enterprise bankruptcy because of working capital illmanagement is not less, so the working capital management in financial management is paid moreand more attention, accordingly, how to evaluate the performance of working capital managementhas become one of the enterprise financial management subjectsWorking capital has two kinds: one is the working capital classification based on elements,including cash and marketable securities, inventory, receivables and payables; another is theworking capital classification based on channels, including purchasing channel working capital, production channel working capital, marketing channel working capital, the business activitiesworking capital, financing activities working capital. Classification of working capital isdifferent, its working capital management performance indexes is not the same: working capital classification based on elements, the evaluation indexes including inventory turnover, accountsreceivable turnover, accounts payable turnover and cash turnover; working capital classificationbased on channels the evaluation index, including purchase channel working capital turnover, production channel working capital turnover, marketing channel working capital turnover, operatingworking capital turnover, finance working capital turnover and total working capital turnover. Then select working capital turnover based on elements and channels and conduct the descriptive analysison the working capital management performance. The results showed that: whether it is based onthe elements of the working capital management performance indexes or based on the channels working capital management performance indexes there were significant industry characteristics. For example, the real estate industry, its working capital turnover, operating working capitalturnover, production channel working capital turnover, inventory turnover are far higher than otherindustries. Then from the point of view of corporate profitability, then profitability indexes forfactor analysis, the results showed that: the number of common factors in different industries is notthe same, but there is homogeneity, when the common factor is only one, which reflects the enterprise profit ability; when the common factors are two, which reflect sales profitability andcapital profitability. The common factor is obtained and the working capital turnover by correlationanalysis. The results show that: the impact of working capital management performance indifferent industries on the enterprise profitability has significant difference, such as agriculture,mining, electricity, transportation and information technology, the influence is not significant,while the manufacturing industry, construction industry, wholesale and retail,the real estate, theaffect is significant, so it is necessary to manufacturing, construction, wholesale and retail, realestate industries working capital for reclassification. Based on this classification, recombine theworking capital management performance indexes according to the enterprise sales profitabilityand capital profitability...