Research On China Railway Working Capital Management Based On Channel Management

The normal operation of enterprise production and operation is inseparable from the support of capital,and working capital is an important part of it.It protects the development of the enterprise.Economic and social development has promoted the innovation of various management methods,and working capital management has followed up with it.Working capital management is no longer limited to the traditional management mode,and gradually integrates supply chain,channel management and other excellent management ideas.The theory of channel management helps enterprises to solve the problem that the efficiency of working capital management is too single by using factor analysis under the traditional way.As a leading enterprise in China’s infrastructure construction industry,China Railway has been enjoying steady revenue growth and a solid product market position.But in recent years,the prosperity of the construction industry has promoted the intensification of competition.The characteristics of scattered construction projects and extensive management determine that enterprises are more prone to problems in capital management.Previous studies have found that construction enterprises generally have problems such as slow capital turnover and low efficiency,large amount of inventory and so on.Therefore,if the working capital management is optimized,it will help to improve its operating efficiency.Based on this,the study of construction enterprises has practical significance,and the choice of China Railway also has references.Through case study,literature reading and comparative analysis,this thesis analyzes the working capital of China Railway Corporation.First of all,based on the definition of relevant concepts and theoretical basis,this thesis improves the existing fund classification from the perspective of channel management,combined with the promulgation of new revenue standards.On this basis,the improved working capital evaluation system is put forward.Secondly,this thesis first introduces the specific measures of implementing the management of working capital of China Railway,analyzes the feasibility and necessity of introducing channel management,and then carries out a preliminary analysis on the working capital turnover efficiency of China Railway based on channel management.Thirdly,in order to better discover the problems existing in the working capital management of China Railway and enhance the persuasiveness of the paper,this thesis selects the data of four state-owned companies in the same industry as China Railway,calculates the average data of five companies including China Railway,and makes a comparative analysis with the data of China Railway.It is found that China Railway does have problems in the management of working capital.Through the analysis,it is found that there are many problems,such as overstock of inventory,large occupation of suppliers’ funds,high amount of receivables,waste of resources caused by idle funds,etc.Based on the analysis of the causes of these problems,combined with the characteristics of the industry,some suggestions are put forward,including strengthening the management of upstream and downstream suppliers and customers,increasing the control of accounts receivable and forecasting We hope to provide reference for China Railway and other companies in the same industry.