Research On Working Capital Management

At present,China's economy has stepped into a period of new normal,which brings new opportunities to Chinese enterprises,but the depth of risk and uncertainty of operating environment have been improved.According to the report of China Business Working Capital Management Research Center,the rate of increase of inventory?account receivable and account payable of Chinese listed companies is more than 5%.In structure,the rate of Short-term financial liabilities is more than 69.53%,which brings more problems about Short-term financial risk.Capital is the foundation of operating activities and value creation,also is the necessary factor of enterprise development.Thus working capital management is the necessary part of the operating management.In this circumstance,how to deal with the good and bad things which are caused by the new normal,and how to survive in the competitive environment,which are the problems of every company.Working capital management is more and more important for enterprises.How to do well in the working capital management and how to accelerate inventory turnover are the difficult problem for companies.Currently there are two main theories about working capital management.One is factor theory,the other one is theory of channels.Factor theory is the theory based on three accounting subjects.Theory of channels includes marketing channels?purchasing channels and producing channels.So as to valuating the working capital management,theory channels analyze the statistics of working capital about every channel.Conclusion:Based on the two element theories,this article analyzes the condition of the working capital management of TGOOD.Also there are some advices about improving the level of working capital management in this paper.