Study On The Management Of Working Capital Of Semir Clothing Company

Working capital is the most basic element of a series of economic activities that an enterprise conducts in production and management.It is closely related to the daily business activities of the enterprise.The level of the working capital management of a company directly affects the level of the profitability of funds within a certain period of time.Therefore,enterprises must attach importance to improving working capital management.Clothing,food,shelter,and perennial human life has always been "clothing" in the first place,at present,China's garment enterprises in the initial stage of working capital management,management tools still exist many problems.Semir clothing company as a typical garment industry in China,is currently in rapid development period,for 12 consecutive years was named China's apparel industry profits,sales of the top 100 enterprises in China's garment industry competitiveness Top 10,this selection of Semir clothing The company as a research object,in accordance with the idea of theoretical research to case studies to conduct a holistic study,with a view to the future of garment enterprises working capital management research has some enlightenment.First of all,based on a large number of references,this paper elaborates the major theories of working capital management and concludes two modes of working capital management analysis:the general working capital management analysis mode and the channel working capital management analysis mode.Secondly,this article focuses on the overview of the company and the financial status of Semir Fashion Co.,Ltd.and finds that there are many problems exposed in its management mode.These problems are also common problems in apparel industry.From a financial point of view,Semir Fashion has a higher level of inventories,a high ratio of current liabilities to total liabilities and a low turnover of current assets.In view of the problems raised above,the article analyzes the causes and analyzes the two working capital management modes.First,the high inventory level of Semir Fashion Company is due to the low level of inventory management.Second,the flow of Semir Fashion Company Debt to total debt ratio is very high because of long-term debt is very small;Third,Semir clothing company's low turnover of liquid assets mainly due to inventory turnover and accounts receivable turnover period is long.Overall,the Senma apparel company's working capital management level there is still much room for improvement.In the end,this paper designs the working capital management plan for Semir Fashion Company and puts forward some suggestions to optimize the working capital management system:one is to emphasize the concept of zero working capital management;the other is to achieve the goal of improving working capital management performance through lean inventory management;Establish partnerships with suppliers to increase commercial credit;Fourth,strengthen the receivables management system;Fifth,strengthen the construction of information systems to explore the Internet + model.The future development of Chinese clothing opportunities and confusion coexist,Senma clothing company working capital management research is an individual study,but there is a similar problem for apparel companies have some reference,with good research value.