Research On Internal Management Capital Operation Of HN Electric Company

In the21st century, in the fierce market environment, it is difficult to seek togrow and develop fou companies who have accumulated alone.Looking at theinternational and domestic large outstanding enterprises,they went to the successthrough capital operation. Capital operation is an important part of businessstrategy.while correct understanding of capital operation significance for enterprises,under the premise,to choose their own internal management capital operation mode,it becomes particularly important. Good internal capital operation enables the rapidexpansion of the capital, the effective accumulation and optimal allocation ofresources. Therefore, to achieve the rise, develop and grow of theenterprise,Internal management capital operations become an inevitable choice forenterprises.Based on the capital circulation and turnover theory, scale economy theory, lifecycle theory, for instance, HN electric co., this paper studies enterprise’s internalmanagement capital operation. This paper introduces the basic situation of the HNelectric company and the way of existing internal capital operation,then analyses HNElectric Company’s balance sheet, income statement, cash flow statement and keyfinancial indicators with the trend analysis, ratio analysis and charts analysis from2011to2013. Although HN electric company internal capital operation in goodcondition, short-term debt paying ability is strong, but also it exists unreasonablecapital structure, asset management of low efficiency and costs rising. Capitaloperation management consciousness, the lack of good financing marketenvironment, the lack of effective cost control, intense competition within theindustry, the extension of credit policy, the lack of independent credit managementdepartment, procurement lack of planning, procurement imperfect internal control,these are the main cause of forming problem.Then the paper puts forward the basic four principles of internal managementcapital operation mode selection.And with the four principles, the paper conceivesHN electric company two kinds of internal management capital operationstrategy.The building HN electric company strategy alliance and internalmanagement capital operation strategy of enterprise life cycle. Different from thegeneral financial statements,,the paper forecasts the future demand for raisingamount from the perspective of financial cost management. Based on the principle of internal management capital operation mode selections, it discusses how tomeet the demand of the investment, Then it puts forward the proposal that choosingthe way of internal management capital operation by the enterprise life cycle.Finally,in view of the HN electric company capital operation problems that exist in theprocess, this paper puts forward some countermeasures for optimizing, in order tohelp HN electric company to achieve sustainable development.