Research On Securitization Of Accounts Receivable Of M Company

In order to pursue high income and occupy market share,many manufacturing enterprises attach great importance to the application of credit policy.However,what follows is the high proportion of accounts receivable in current assets and the large occupation of enterprise cash flow.At the same time,it will also bring other problems such as enterprise financing difficulties.Accounts receivable securitization is a relatively novel financial tool in recent years.It can not only reduce the management cost of accounts receivable,but also bring cash flow to enterprises,but also reduce financial leverage and control financial risks.Therefore,the scale of accounts receivable securitization market continues to grow,and more and more enterprises hope to finance in this way.Through extensive reading and combing of relevant literature,and on the basis of summarizing the previous research experience,this paper analyzes the specific cases of M company’s accounts receivable securitization project,in order to provide some experience and reference for other enterprises in the same industry.Firstly,this paper expounds the related concepts,principles and causes of accounts receivable securitization,and analyzes the development status and problems of accounts receivable securitization in China.Secondly,on the basis of relevant theories,this paper makes a qualitative and quantitative analysis on the accounts receivable securitization cases of M company,including:introducing the basic operation and accounts receivable of M company,explaining the internal and external motivation of issuing accounts receivable securitization products,and analyzing the specific implementation scheme and key links of accounts receivable securitization project of M company.Then this paper makes a more specific analysis of the implementation effect of securitization products,mainly from the three aspects of financing cost evaluation,financial effect evaluation and risk transfer effect evaluation,and makes a quantitative analysis through the calculation of capital cost,operation ratio,debt service ratio and profit ratio,enhancing cash liquidity and Z-score Model.Finally,it obtains the relevant enlightenment of M company’s accounts receivable securitization for manufacturing enterprises,and puts forward suggestions from the perspective of the issuer and supervision.Through the analysis of the case,this paper draws the following conclusions:accounts receivable securitization has a good promotion significance for those manufacturing enterprises with high accounts receivable,large scale and urgent need to improve the problem of short-term cash flow shortage.However,enterprises still need to optimize and improve the allocation of capital pool,the setting of circulating system and the daily management system of accounts receivable,so as to improve the effectiveness of accounts receivable securitization on enterprise financing.