Research On Performance Evaluation Of Working Capital Management Of Company M

With the acceleration of economic globalization,the economic situation at home and abroad is becoming more and more complex,and the market environment is unpredictable.As an industry that is closely related to the daily life of the country,while expanding the scale of production and operation,it faces insufficient working capital and utilization rate.There are not many probl ems,such as low working capital management performance and other problems.As a result,the capital chain is broken,and there are many companies that even lead to bankruptcy and failure.Working capital runs through the company’s various business activit ies and is the key lifeblood to ensure the normal operation of the company.For enterprises,the focus of financial management is on the management of working capital,and effective management methods facilitate enterprises to gain a competitive advantage in the market and occupy a larger market share.Therefore,enterprises formulate a scientific and reasonable working capital management model,on the one hand,to ensure the solvency and financing ability of the enterprise,on the other hand,it can also i mprove the level of capital turnover of the enterprise,and improve corporate income.Any enterprise on the market needs to find a working capital management performance evaluation system that suits its own situation on the way forward to improve the working capital management level.Through continuous performance evaluation,problems found in enterprise management are discovered,and solutions are continuously optimized to enhance operational management capabilities,maximize enterprise value,maximize the interests of stakeholders,and promote the company’s long-term development.Company M is a well-known home appliance company in China and a leader in the home appliance industry.In recent years,the company has faced fierce competition in the same indust ry while developing.The problems of small capital investment and low working capital management performance have seriously affected the company’s rapid development.In response to this,this paper builds the M company’s working capital management performa nce evaluation system,supplements the M company’s working capital management performance evaluation method,improves the efficiency of fund use,and brings more economic benefits to the company.This article is based on a series of literature published by domestic and foreign scholars on working capital management and performance,using literature research methods,case analysis methods,qualitative and quantitative analysis methods,guided by asset portfolio theory,stakeholder theory,and 3E efficiency theory.Take M Company as the research object.Firstly,it introduces the overall overview of M Company.By querying the financial statements of 2014-2018,it sorts out the size and structure of M company’s working capital,summarizes the working capital ma nagement system and strategy,and analyzes the working capital turnover of major projects.Through the above analysis,we have an overall understanding of M company,and provide help for the selection of indicators for building the performance evaluation s ystem in the next chapter.Then,build a working capital management performance evaluation system,which discusses from four dimensions: harmony,liquidity,risk,and profitability.According to the actual situation of the company,under each dimension,the corresponding evaluation index is selected.After the evaluation system is constructed,it will be practically applied,and the method of combining AHP and fuzzy comprehensive evaluation will be used to comprehensively judge M company’s working capital management performance.According to the evaluation results of M company’s working capital management performance,the main problems in the company’s working capital management process were found: the ability to recover accounts receivable is weak,the work ing capital financing structure is unreasonable,etc.,and the cause of the problem was found.The company’s working capital management performance recommendations are aimed at improving the company’s profitability,better occupying the market,and realizi ng corporate value.It is hoped that through analysis of M company ’s working capital management performance evaluation,it will give some guidance to other companies in the same industry to avoid the recurrence of problems and accelerate the development of China ’s home appliance industry.