Research On Working Capital Management Model And Effect Of Foshan Haitian Flavouring And Food Company Ltd.

Working capital management is the focus of enterprise financial management.Through activating internal financial resources,and establishing a solid relationship with stakeholders,it promotes high-quality development of enterprises.Efficient working capital management model can optimize the allocation of funds in different current assets of the enterprise.It can control financial risks,and improve financial performance.Haitian is a leading enterprise in the condiment industry.In the past 10 years,the compound growth rate of net profit has reached 21%.The core business of the company does not form receivables.Interest-bearing liabilities are very few,and there is little external financing except listing.The company’s working capital management has played a positive role.According to the above phenomenon,the core question of this paper is: what is the mode and operation effect of Haitian’s working capital management,and how do the working capital management activities form the above financial phenomenon? Research idea of this article is: combined with the company’s financial performance,this paper studies the operating mode of working capital management in the procurement,production and sales channels of the company’s business activities.This paper analyzes the relationship between different channels and the role played by parent and subsidiary companies in channel management,and constructs the analysis framework of "the formation of working capital management mode → operation characteristics →prominent effects".Combined with the characteristics of the company’s monetary capital,the paper studies the strategy adopted by the company in the management of monetary capital,introduces the measurement model of cash holding,and explores the rationality of the company’s current cash holding.Combined with the characteristics of working capital financing,this paper studies the transmission path of working capital management activities affecting financial performance,and analyzes the risk points in working capital management activities.The research findings of this paper are as follows :(1)the working capital management of the company’s business activities relies on different channels of the supply chain to promote the company’s financial performance in the leading level of the industry;By its competitive advantages,the company has won the right to speak in the supply chain,which is reflected in the control ability,bargaining power and payment settlement methods of upstream and downstream enterprises.The company controls the cost of procurement and production channels through cost leadership strategy and occupies the capital of upstream and downstream enterprises through OPM strategy.The supply chain efficiency is improved through information system and intelligent factory layout.The division of business between the parent and subsidiary company improves the efficiency of centralized channel management and the capital exchange between the parent and subsidiary company improves the utilization rate of working capital.(2)Monetary fund in business activities is the source of monetary funds in financial management activities.The company adheres to the principle of conservatism and achieves reasonable cash expenditure through the decentralized cash management mode of parent-subsidiary companies.So it maintains reasonable cash holdings.(3)Working capital management activities optimize financing structure,reduce financing cost,reduce external financing demand,and improve the company’s economic value added.Risk mainly exists in procurement channels and sales channels.The innovation of this paper lies in: from the perspective of the company as a whole,it studies the whole chain of manufacturing enterprise working capital management mode from the formation reason to the specific operation and then to the actual effect,and clarifies the internal logic of the impact of working capital management on enterprise financial performance;From the perspective of parent-subsidiary company,it analyzes the internal relationship and significant advantages of the group’s internal working capital management activities;Based on the case of the simultaneous implementation of OPM strategy on the upstream and downstream enterprises,this paper studies the formation reasons,advantages and influences of the mode of "both occupying capital" on financing structure and corporate performance.