Research On Performance Evaluation Of Working Capital Management Of M Food Company Based On Analytic Hierarchy Process

The sound management and efficient use of working capital is a prerequisite for the company to operate well and sustainably.Therefore,constructing a complete performance evaluation system for working capital is the guarantee for enterprises to improve the efficiency of working capital management,improve the production and management capabilities,and achieve long-term development.This paper breaks the traditional evaluation mode of working capital management.According to the actual situation of the target enterprise,combined with channel theory and analytic hierarchy process,it establishes a more comprehensive and targeted performance evaluation system for working capital management,and finds out all aspects of the impact of theenterprise.The main problems,and put forward corresponding improvement measures to improve the management level of the target company's working capital,lay the foundation for the long-term development of the company.It also enriches theliterature on working capital research.M Food Company,which is part of the food processing industry,is the largest pickled vegetable production and processing enterprise in the Northeast.The products are exported to overseas and are representative of a farmer's and non-staple food processing industry.Its business mainly involves the production and processing of pickled vegetables.Finished with bags.In recent years,due to the changes in the economic environment and consumer demand,the sales power of pickled vegetables has declined year by year,and the operation of M Food Company has been greatly affected.According to the financial report data of 2014-2017,M Food Company has problems such as operating income,inventory growth,and increase in accounts receivable.The low efficiency of its working capital management has led to poor production and operation of the company.As the research object of this paper,we use the traditional performance evaluation method to evaluate the working capital management of M Food Company.The results show that M Food Company has problems such as unreasonable capital structure,inventory turnover days,and accounts receivable turnover days,and its current working capital management performance evaluation method is relatively backward,focusing only on the single item.Optimization,but neglected to optimize the overall allocation of capital.Therefore,this paper builds a better performance evaluation system for working capital management,which combines channel theory and analytic hierarchy process,and identifies raw materials,drawing out the results of the evaluation of the poor management of working capital,other accounts receivable,and advance receipts,which affect the company's procurement,production and sales.The key factors of channel management,combined with the characteristics and objective conditions of M Food Company,provide more scientific optimization suggestions for enterprises,improve their working capital management level from the root cause,and enhance the production and operation efficiency of enterprises.At the same time,it also provides case support for the future development strategies of other companies in the same industry.