Relationship Between Working Capital Management And Profitability Of Listed Real Estate Companies

Working capital refers to the difference between the flow assets and the current liabilities needed in the daily production and operation of an enterprise.It is called the "circulating blood" of the enterprise.It is related to the efficiency and quality of the enterprise's production and management.It is also related to the liquidity and risk of the enterprise assets.It is of great significance to the survival and development of the enterprise.The real estate enterprises are developing rapidly The working capital of real estate enterprises has a long turnover cycle and a large flow of funds.The efficiency and security of the capital chain of real estate enterprises have always been a topic of great concern.Therefore,this paper chooses the working capital management of real estate enterprises as a study.The research of working capital is very late in our country,The study will help the real estate enterprises to formulate a reasonable operating capital policy and establish a scientific operating capital management.Firstly,the relevant literature and basic theories are introduced.Secondly,I chose the real-estate industry as the research object.Descriptive statistics and analysis of the current situation of it are carried out,and the financial data of the listed real estate companies during the five years from 2012 to 2016 are selected.The relevance of investment policy,financing policies,management efficiency to profitability are empirically studied by multiple linear regression.Finally,the more radical the investment policy is,robust the financing policy is and efficient the management is,the more profitable the company is.And the cash cycle is negatively related to the profitability of company,the turnover period of inventory and accounts receivable is positively related to the profitability of the real estate enterprises.And the turnover period of accounts payable is positively related to the profitability of it,and the corresponding suggestions are put forward.