Research On Working Capital Management Of FL Auto Parts Companies Based On Channel Perspective

Working capital occupies an important position in corporate financial management and is hailed as the "flowing blood" of an enterprise.Working capital management is related to the operation of the enterprise and is related to the survival of the enterprise.Therefore,strengthening corporate working capital management is particularly important for corporate working capital management.In recent years,China’s auto industry has developed rapidly,and the rapid growth of production and sales has driven the development of the upstream auto parts industry.However,there are still a large number of high-barrier subdivision parts in the hands of international brands and joint ventures.Local auto parts companies face huge pressure.As a domestic independent parts manufacturer,FL Company needs to strengthen its existing working capital management capabilities if it wants to take the lead in the industry competition.This article selects FL company as the research object,collects and organizes the financial data of FL company from 2014 to 2019,first briefly introduces FL company’s current operating status and financial status.Then combined with the relevant knowledge of working capital management,using the working capital management concept under the channel perspective,the working capital of the FL company is divided into purchasing channel working capital,production channel working capital,sales channel working capital and financial management channel working capital The system analysis of the working capital of each channel,carryout a systematic analysis of FL company ’s four channels of working capital,and at the same time select a listed company that is similar to FL company for comparative analysis.Through analysis of relevant financial elements and indicators,analyze FL company ’s working capital management by channel performance evaluation system.Existing problems,and put forward corresponding improvement measures.Through research on FL companies,we can find that FL company’s working capital management is basically in the upper middle of the industry,and the procurement channel working capital turnover period and production channel working capital turnover period still have a certain gap with the industry.The specific problems are:Excessive use of commercial credit in procurement channels and extensive setting of raw material safety stocks;poor R & D and production balance in production channels;Unreasonable product sales structure in the sales channel and backward inventory management;A single investment channel for financial management.Based on the above problems,carefully find the cause of the problem,and according to the current status of the FL company and the development trend of the industry,put forward countermeasures for the management of working capital of each channel.Finally,the article establishes FL company’s working capital guarantee measures from three aspects of manpower,technology and system to provide guarantee conditions for the implementation of working capital optimization measure.