Research On The Influence Of Economic Cycle On Working Capital Management Of Household Appliance Manufacturing Industry

Working capital management is the management of current assets and current liabilities.In order to maintain the normal operations,it is necessary for the enterprises to have the right amount of working capital.According to the survey,the company's financial manager spent 60%of their time on working capital management.Evidently,the core content of working capital management are the management of fund raising and the using of funds.As a big manufacturing country,China's household electrical appliance manufacturing industry is in the pillar position of the worldwide manufacturing industry,the scale of China's household electrical appliance industry has been ranked first in the world.From the perspective of the domestic market,in the "11th Five-Year" and "12th Five-Year" period,China household appliances industry has experienced the rapid growth period of the domestic and international market demand,and it has experienced a great impact of the financial crisis.At present,China's household electrical appliance industry production scale has been ranked first in the world,which is one of the strongest international competitiveness industries.Thus,the development of home appliance industry is in relation to the development of China's manufacturing industry,and business working capital management is the key factor of the survival of enterprises.Especially in the economic downturn,enterprises must pay attention to their own "health problems",many enterprises bankruptcies happened in the period of economic downturn due to funding strand breaks.The basic reason is that the enterprise working capital management concepts are backward,and it causes the waste of money and insufficient ability to repay maturing debt.Therefore,it is very important to find out the existing problems of the working capital management and the root causes of the problems of working capital management.The trend of national policy often has some influence on the working capital management.Therefore,we need to study the impact of the national economic cycle on the working capital management of the home appliance industry,and to provide the solutions and suggestions.Firstly,this paper introduces the basic theory and related researches of working capital management,and then analyzes the influence of the economic cycle on the working capital of the household appliance industry.To introduce the typical home appliance manufacturing industry listed company GREE,through factors and two channel analysis of GREE,this paper aims to show how these indicators change in different economic cycles.And this paper summarizes the working capital management ways which have good performance in each channel,to put forward some suggestions for working capital management of other appliance manufacturing enterprises.Trhrough GREE's case analysis,this paper hopes to have a certain reference significance in helping the other electric appliance manufacturing enterprises when they face the economic cycle changes.