Research On Working Capital Management Of Supor Under The Influence Of Epidemic Situation

Minor electric appliances industry has the characteristics of large number of products,low unit price and fast turnover,and the capital flows faster than other industries,so efficient management of working capital is very important for minor electric appliances enterprises.At present,under the background of the outbreak of COVID-19 epidemic,minor electric electrical appliances enterprises are facing new opportunities and challenges.Emerging minor electric appliances enterprises enter the market and constantly occupy market share.Old household electrical appliances enterprises have to face the dual pressures of sudden epidemic and market share protection.Some minor electrical appliances enterprises have broken their capital chain due to the sudden decline of offline performance,thus withdrawing from the market.Therefore,the remaining old household electrical appliances enterprises should be vigilant.To provide guarantee for the normal operation of enterprises,they should strictly control the capital management of enterprises,always ensure that the capital flow of enterprises is abundant,and improve the management ability of enterprises on working capital.Therefore,the idea of channel management is introduced,and the working capital is reclassified from the perspective of channels,so as to conduct a complete working capital analysis from the perspective of various channels.However,the traditional working capital management model can’t meet the needs of modern enterprises’ management of working capital,and it has great limitations,ignoring the relationship between various businesses,focusing only on the analysis and management of individual projects,without overall analysis and evaluation of working capital,and the conclusions are all one-sided.In this paper,taking Zhejiang Supor Co.Ltd.as the research object,under the background of the outbreak of COVID-19 epidemic,from the perspective of channel management,the working capital management of Supor is studied by using literature research,case analysis and financial index analysis.Firstly,this paper expounds and analyzes the present situation of Supor’s working capital management on the basis of literature and theory.Secondly,combined with Supor’s operating performance after the outbreak of the epidemic,and by studying the present situation of working capital management in various channels,it is found that Supor’s working capital in various channels has the following problems: Excessive inventory backlog;Sales are not smooth;Unreasonable management of accounts receivable;The management benefit of activity working capital is low.There are several reasons why Supor has these problems: unreasonable raw material procurement and high procurement cost;Backward sales channel construction;Export-related enterprises account for a large proportion,and accounts receivable collection is slow;Economic fluctuation under the influence of epidemic situation.Finally,according to the problems existing in various channels of Supor,the following targeted suggestions are put forward: strengthen the control of raw material procurement;Reduce inventory backlog and improve informatization level;Accelerate channel construction and strengthen customer development;Manage accounts receivable reasonably;Appropriately reduce financial investment and borrow long-term debts.Through the research in this paper,it can be concluded that small household electrical appliances enterprises will be impacted to a certain extent when unexpected events occur,but combined with the characteristics of small household electrical appliances industry,keeping efficient management of working capital at all times can reduce operational risks.In terms of working capital management,it is feasible to combine channel management,and it is possible to evaluate the key working capital management projects of each channel,so as to make targeted improvement.The purpose of this paper is to summarize some suggestions for listed companies to manage working capital based on channel when encountering unexpected events through research and analysis of Supor Company,for reference,so as to help some companies develop a new angle for managing working capital,with a view to improving the management quality of working capital.