Research On Working Capital Of BYD New Energy Automobile Manufacturing Enterprise

Working capital is like the blood of an enterprise,and it maintains the orderly operation of all aspects of production and operation of the enterprise.The operation and turnover of the enterprise depend on working capital.The process of working capital formation can reflect the process of changes in corporate financial status.Formulating a correct working capital management strategy and improving the management level of working capital are conducive to accelerating the realization of corporate funds,shortening product operation cycles,and reducing costs.At the same time,the improvement of working capital conditions is conducive to improving the short-term debt repayment ability of enterprises and reducing their debt repayment risk.In corporate financial management,working capital management has always been the focus of attention of enterprises.The quality of working capital plays a vital role in the survival and development of enterprises.In essence,the new energy vehicle manufacturing industry is a capital-intensive industry.From the production of new energy vehicles to sales,a large amount of capital needs to be invested.In addition,the research and development of new energy vehicle batteries also requires a large amount of working capital as a support.Therefore,working capital is very important for new energy vehicle companies.Studying the working capital of a new energy vehicle manufacturing company can see that the liquidity and operating situation of this company’s assets are helpful to provide some reasonable suggestions for some new energy vehicle companies in China to optimize fund management and improve working capital turnover.It can also provide some reference for the transformation of traditional automobile manufacturing enterprises,so that China’s automobile manufacturing enterprises can better manage working capital in the process of transformation and development.This article combines the current development status and background of the new energy automobile industry.Taking BYD as an example,from the overall structure of working capital,the management level of working capital by the three channels of procurement,production,and sales,and the impact of government subsidies on working capital.Starting from various aspects,the problems of working capital of BYD company are analyzed,and I hope to provide some suggestions for BYD company and other new energy automobile manufacturing enterprises in the transition stage in China.