Study On Working Capital Management Strategy Of Western Superconducting Technologies Co.,Ltd

As China’s market economy is becoming more mature,competition between enterprises has entered an incandescent stage,and enterprises must start from the weakest link to improve competitiveness if they want to be invincible.In the production and operation activities of enterprises,the procurement,production and sales are inseparable from the support of working capital.A reasonable working capital structure is the fundamental guarantee for the sustainable development of the enterprise.However,enterprises often ignore working capital management in financial management.This has become one of the fundamental reasons restricting the development of enterprises.Based on this,modern enterprises should pay more attention to working capital management,determine a working capital management strategy suitable for enterprise development,formulate specific working capital management measures for each link of production and operation,establish and implement a guarantee mechanism,and reduce capital risks and benefits China is constantly exploring the balance point to ensure that the company has a safe and controllable solvency while maintaining good profitability,and promotes the sustainable development of the company.This paper draws on the theory of working capital management based on supply chain,takes the current status of working capital management of Western Superconducting Materials Technology Co.,Ltd.as the research object,uses literature research methods,case analysis methods,financial index analysis methods and other research methods to purchase,The production,sales and other links are the starting point,comparative analysis of the working capital management performance of Western Superconductor,to find out the current problems and deficiencies in the management of Western Superconducting Working Capital,on the basis of analysis of the reasons for working capital management Optimize strategies and formulate safeguards for their implementation.The research conclusions of this paper mainly include two aspects: one is to analyze the problems and causes of western superconducting working capital management from the perspective of supply chain management: in business activities,fluctuations in the price of raw materials in the procurement link have a greater impact on working capital management performance;production Links exceed orders for production and stocking,resulting in low performance of working capital management in the link of production;the backlog of finished products in sales links is large,bills receivable and accounts receivable are relatively large,and the risk of inventory decline and bad debts of receivables is prone to occur.In the financial management activities,there is the problem of idle monetary funds,and the possible benefits of investing in idle monetary funds are lost.The second is to put forward corresponding countermeasures against the working capital problems existing in each link of the western superconductivity: in business activities,the procurement link should establish supplier alliances to reduce the risk of out-of-stock;the production link should continue to carry out technological innovation,shorten product production cycles,and enhance inventory Plan to reduce the number of products in progress;the sales link should establish a customer strategic alliance,reasonably estimate the number of finished products,and improve the efficiency of account receivable recovery.In financial management activities,it is reasonable to determine the optimal holding amount of monetary funds,flexibly use financial instruments for capital preservation investment,and realize the appreciation of corporate assets.The innovation of this article is to put working capital management through the business processes of enterprise procurement,production and sales.Based on the combination of theory and practice,the objective analysis of the current deficiencies of working capital management of Western Superconducting Technologies Co.,Ltd.and specific Optimization strategy,hoping to provide reference for the company’s working capital management.