Research On Working Capital Management Of Rubber And Plastic Products Industry

The working capital of the enterprise is the fundamental place for an enterprise to develop its strategy and long-term development.The working capital drives the whole operation and operation of the enterprise.The core position of the management of working capital in the financial management of the enterprise is unshakable.The level of working capital management directly affects the profitability and long-term development of the enterprise,which is the key to the development of the enterprise.If enterprises want to operate normally,they mu*ST have a stable flow of funds and do a good job in the management of working capital.To a certain extent,they determine the business performance of the company and even its survival.Traditional working capital management is mostly on the strength of optimizing the structure and determining reasonable holdings.However,because it is too general,it make the enterprises difficult to make management decisions in a timely and effective manner in a complex and the changing economic environment.Though in recent years,a lot of experts and scholars have conducted detailed case studies on working capital management.The case involves many industries,but more is carried out in industries such as dairy products,real estate,and pharmaceutical manufacturing.For the rubber and plastic products industry,there is little research,and each industry has its own unique features.How to realize the extensive integration of existing theories and corporate working capital management practices is still worthy of further study.Since the "13th Five-Year Plan",the introduction of a series of national policies also indicates that China is doing its best to advance the development of the green printing industry.Among the listed companies in the rubber and plastic products industry,KDX is a relatively representative enterprise.As a leading enterprise in China rubber and plastic products industry,KDX maintains its leading position and realization in the rubber and plastic products market in China.Beyond 3M's ambitious goal of entering the international rubber and plastics industry,the management of working capital is particularly important.The quality of working capital management directly affects the realization of business objectives and strategic objectives.Taking KDX Composite Materials Group Co.,Ltd.as an example,this paper studies and analyzes KDX's working capital management from the perspective of traditional accounting factors.The financial statement data disclosed from 2013 to 2017 was selected as case analysis data and systematically analyzed.By flipping through relevant literature,we classify the research results of present working capital management in domestic and foreign,and elaborate the correlation theories of working capital management,which establish a theoretical basis for the study of KDX's new working capital management.The article mainly includes the following six parts: The first part introduces the background and significance of the working capital management;the second part introduces the conception of traditional working capital,the evolvement of working capital management theory and management mode;the third part,case Analysis is the top priority of this paper.First,it analyzes the scale and structure of current assets and current liabilities.Secondly,it has carried out a single project for KDX's monetary funds,accounts receivable,short-term loans,and short-term financing bills.Finally,through short-term solvency,operational efficiency and DuPont analysis of these ratios for analysis and research,combined with the recent major events of KDX,to explore the actual situation of KDX new working capital management.The fourth part,on the one hand,is based on the case analysis data,starting from the actual situation of KDX and the letter and investigation of the Shenzhen stock Exchange and the CSRC,to consolidate and summarize the problems of KDX.It was found that KDX still had problems such as more idle monetary funds,unreasonable debt structure,low sales repayment ability,long accounts receivable and liquid assets turnover period and lax supervision of accounts receivable,resulting in bad debts.On the other hand,through the research on KDX's announcement,it is found that the causes of KDX's problems include improper information disclosure,high controlling pledge rate of controlling shareholders,unreasonable guarantees and capital occupation of major shareholders,etc.,which may cause KDX's working capital management is low and the capital chain is broken.The fifth part,based on the specific problems and the internal real reasons,carries out corresponding countermeasure analysis,and play a positive role for the management of KDX new working capital.The aim is to improve the management of KDX's working capital,to ensure the survival and development of the company,and to provide reference for China rubber and plastic products industry.The last part is the conclusion of this paper.