Optimization Research On The Working Capital Management Of Company D

In the past decade,photovoltaic energy has been widely used,and the scale of Photovoltaic together with its upstream and downstream industries in China has shown explosive growth.However,in 2018,the sudden promulgating of the new policy "Notice on Matters Related to Photovoltaic Power Generation in 2018" made the price of photovoltaic electricity reduced significantly,and the scale of subsidies for photovoltaic projects was also strictly limited,which inhibited the development momentum of the industry."531 Photovoltaic New Deal" has greatly reduced the profitability of photovoltaic enterprises,making a large number of photovoltaic and its upstream and downstream enterprises into financial difficulties and business crisis,and the industry into a turbulent situation.After the "531 Photovoltaic New Policy" was issued,the policy pressure was transmitted to the upstream of the photovoltaic industry,leading to a significant decline in the performance of diamond wire enterprises represented by Company D in2018,capital flow problems and working capital liquidity was also affected.Working capital is all over the business links of the enterprise,scientific working capital management system can ensure that the enterprise has enough liquidity,optimize the allocation of resources in each link,so as to increase the earnings of the enterprise;If the working capital of the enterprise has problems,it will affect the turnover capacity and profitability of the enterprise,and even threaten the sustainable development of the enterprise.This paper takes Company D,the representative enterprise of diamond line industry,as the research object.On the basis of a brief introduction of the enterprise,it firstly analyzed the environment of Company D and the changes of its working capital after the promulgation of "531 New Policy",found that its working capital strategy has low liquidity and turnover efficiency.After studying the current situation of working capital management under the background of "531 New Deal",analyzing its business process using channel theory,found the problems of working capital management in procurement,production and sales channels with the help of financial data.It is found that the problems existing in the working capital of Company D are mainly four aspects: unbalanced allocation of working capital,low efficiency of information transmission,weak ability to cope with risks and excessive centralization of working capital management.However,the main reasons for these problems are that the channels of Company D are not closely connected,the informatization degree of working capital management is low,the emergency management mechanism of working capital is lacking,and the working capital management is separated from the business process.According to the analysis of the problems,the optimization suggestions of company D’s working capital management have been put forward.Proposed framework to the enterprise strategy as the guidance,supported by data information system,to establish a strategic alliance of supply chain as the goal,based on the theory of channel for purchasing,production,sales channels to put forward the corresponding Suggestions for improvement,and proposes the optimization in the final three security measures,and effectively improve the company’s working capital management,and to help company D together with other similar enterprises through the industry shock period.