Research On Case Of BYD Corporation In Working Capital Management

Reasonable funds management is very important for enterprises.If the human body is compared to an enterprise,then the operating capital of the enterprise is like the blood flowing constantly in the human body,supporting the normal operation of various organs of the body at all times.For an enterprise,the working capital,as its blood,is critical to its orderly operation.In order to prevent an enterprise suffering from such unhealthy phenomena as “blood insufficiency” or “blood viscosity”,a qualified enterprise manager should make use of the characteristics of the working capital itself and combine scientific management methods for effective management.The working capital has many characteristics,such as largest mobility,strongest transformation and shortest turnover period.Therefore,the turnover status of the working capital can directly reflect the daily capital flow,operation and economic benefits of the enterprise,which has a great impact on its survival and development.Automobile manufacturing industry as a capital-intensive industry,has greater capital needs than the general manufacturing industry in terms of factory building,research and development,as well as production and sales.Therefore,the study of the working capital of automobile manufacturing industry is not only conducive to optimizing the working capital structure of China's automobile manufacturing industry and improving the efficiency of the working capital,but also conducive to improving the competitive advantage of China's automobile enterprises for smooth transition to new energy automobile manufacturing.Based on the basic principle of working capital management and the main research results both at home and abroad,this paper combines working capital management with the theory for enterprise business process and channel management to have carried out in-depth research on the case company BYD,analyzed its working capital management status(including the working capital structure and efficiency)during the period(2006-2017)of the transition from a traditional automobile enterprise to a new energy automobile manufacturer and summarized its management methods,advantages and disadvantages in working capital management during the transition period,hoping to help BYD improve its own working capital management,optimize the relevant management system and improve the level for working capital management.Moreover,it is hoped to help provide useful reference for other automobile enterprises to manage their working capital better when developing from traditional automobile business to new energy automobiles.