Research On Evaluation And Improvement In Management Of Working Capital Of Lou Steel Company

The management of working capital is one of the most important aspects in contemporary corporate management which will bring unexpected profit to the company. If the management of working capital is effective, it may solve the most difficult problem in corporate management. Working capital plays a crucial role in the normal operation and development of enterprises.Because of big capital occupation and low rate of profit industry characteristics of steel industry, its working capital has some different characteristics from general industry. So the management measures are not the same. Most of existing empirical analysis on working capital management are from its specific items constitute. But the overview of the whole working capital management based on system theory and studies on the interaction of various elements of its management are not mature.At first, this article reviews the research result about working capital management. The latest theories and practical experience of modern enterprise operating funds management are summarized. Combine the current situation of its production and operation and management level of the company, it points out the problems existing among the management of working capital of the company, and analyzes the reasons. Then, starting from the problems and reasons, with the internal enterprise management and external measures, to find improvement strategies. And we divided it into order, purchasing, production and sales these 4 specific aspects to study the working capital management of the company. Thus, we can extend and optimize the idea of capital management, and put forward the principles, main contents and specific measures for improvement at last. Through improving the working capital management of the company, it can not only fully meet the needs of the production and business operation activities, but also can guarantee the safety and liquidity of enterprise working capital. At meanwhile, it can increase turnover speed of working capital, thus to improve working capital management efficiency of the company. Finally, it can help the company to obtain a higher efficiency.