| Working capital plays an important role in the development and operation of an enterprise,and the management of working capital is involved in all aspects of the enterprise’s daily production and operation.Good working capital management not only maximizes the use of enterprise resources,but also creates value for the enterprise and promotes its development.The constant change of Internet technology has promoted the booming development of the retail industry,but with the gradual weakening of the e-commerce dividend,many retailers are constantly making changes to their business models to seek differentiation and have introduced a new business model that combines online,offline and logistics.Currently,the development of this model is in a rapid stage of development,and the demand for capital is becoming stronger.Therefore,enterprise managers need to strengthen the management of working capital financing,combine the actual situation of the enterprise,balance the relationship between risk and return,and choose a reasonable working capital financing strategy.This paper firstly introduces the background and significance of the study,and uses the literature research method to sort out the relevant domestic and foreign literature,then defines the relevant concepts,such as the concept of working capital,the classification of working capital,the types and characteristics of working capital financing strategies,and elaborates the theories that can explain the working capital financing strategies,so as to pave the way for the later analysis.Secondly,this paper uses the case study method to select Company A,a representative enterprise in the retail industry,and analyze its working capital scale and structure in the context of industry background,company strategy and current operating situation,and use better metrics to determine its working capital financing strategy type,and find that that Company A’s working capital financing strategy has changed significantly from 2015-2021,adopting an aggressive working capital financing strategy in 2015,adjusting to matching in2016-2017,shifting to conservative in 2018,and adjusting to aggressive again in2019-2021.The main reason is that Company A’s business strategy has changed,and it has implemented a diversification and expansion strategy since 2018,but affected by the investment failure and the new crown epidemic,the company has generated a huge capital gap,its financing ability has decreased,and its working capital financing strategy has changed.Thirdly,this paper uses the comparative analysis method to evaluate the effect of Company A’s working capital financing strategy from multiple perspectives,such as profitability,liquidity,security,capital flow adequacy and stability,etc.The results find that Company A has good performance in terms of accounts receivable liquidity,but the working capital lacks profitability,inventory turnover slows down,accounts payable liquidity is poor,debt servicing capacity is weak,and the performance of cash flow adequacy and stability is poor.Then,the paper points out the problems in the working capital financing strategy of Company A: unstable working capital financing strategy;there is a risk of capital chain breakage;the ratio of current liabilities to total liabilities is too high;and over-reliance on financial-like models.Finally,specific optimization suggestions are given for the above problems,hoping to provide some theoretical references for the improvement of the working capital financing strategy of this company,and to provide reference for other similar enterprises in the retail industry. |
