Research On The Improvement Of The Asset Turnover Efficiency Of Longji

This paper focuses on asset turnover efficiency of Longi which was studied by a number of indicators comparing them in the same industry transversely and studying historical trends longitudinally. Through longitudinal trend of Longi's historical development, the total asset turnover, accounts receivable turnover, inventory turnover rate increased year by year, which says asset management efficiency of Longi is constantly improving; horizontal comparison in the industry there are still many deficiencies, total asset turnover remained at the median level, inventory turnover is less than the median, the level of competition in the industry is relatively backward.Secondly, the factors that affect the efficiency of asset turnover Longi was analyzed to better understand what factors limit asset turnover, what factors increase the asset turnover. Cyclical economic fluctuations caused to idle fixed assets, improper method of depreciation of fixed assets, the low market demand, sales puerile, strong bargaining power of large customers and so on lead to asset turnover efficiency of Longi is relatively low.Then, according to the preceding factors, the paper proposes solutions to enhance the Longi turnover. The main idea is to increase sales and reduce occupancy assets. Specifically, on the one hand, as far as the products of enterprises, Longi should improve product competitiveness, make "Leye" brand, develop multivariate products, expand the industrial chain, open up the domestic market, innovative sales model, strive for more market share, optimize the customer structure, to acquire higher sales revenue; on the other hand,in terms of reducing assets occupation, Longi should prudent decision-making in fixed assets investment, manage customer credit actively, accurate order forecasting.Finally, this paper analyzes the supporting safeguards of asset turnover efficiency to enhance implementation of the program. These are enhancing everyone's sense of asset management efficiency, the main financial organization structure design, system design and financial decisions, financial risk management system, a comprehensive budget management system and other financial system, and dealing with the problem flexibility.