A Study On Working Capital Risk Management Of S Company Based On Value Chain

In the process of global integration,the current international background has become more severe and the world economic situation has become more complicated.The downward pressure on China’s economic development caused by the trade friction between the US and China and the neo-crown epidemic will promote the industry to consolidate and concentrate the advantageous industries to develop in a safer direction.New products and technologies around neo-crown vaccines and neo-crown therapeutics have been rapidly developed under the ongoing impact of the neo-crown epidemic.In response to the New Crown epidemic,the overall production capacity and industry chain support level of China’s biopharmaceutical industry is also rapidly increasing,and enterprises need to continue to develop,then the working capital management of enterprises also becomes more and more important.One of the most likely risks faced by enterprises in the process of continuous development is the risk of working capital,once the capital flow is broken,the consequences are unimaginable,the enterprise may face bankruptcy and collapse.The limitation of the traditional approach to managing working capital in our enterprises is that it does not take into account the holistic nature of working capital management and cannot keep up with the development of modern enterprises.This has led to the introduction of the concept of value chain management.It is important to study cash flow management from the perspective of value chain,which is in line with today’s economic development trend and can help enterprises to allocate cash flow efficiently and maximize enterprise value.In this paper,we study the working capital risk management from the perspective of value chain in a well-known company S in the pharmaceutical manufacturing industry as a case study.Firstly,we use the literature research method to review the theories at home and abroad to understand the current status of research on value chain management and working capital risk management and summarize the relevant theories.Secondly,we analyze the current situation of working capital risk management in Company S.We use the financial situation analysis method to identify the working capital risk of Company S from each link of the value chain.The working capital risk assessment system is constructed from three dimensions of working capital adequacy,liquidity and profitability using hierarchical analysis to quantify the working capital risk of Company S according to the objectives of working capital risk management.The working capital risk of Company S in the past five years is compared vertically using the comparative analysis method,and then the working capital risk of Company S is compared with the industry average from the horizontal perspective to analyze whether the working capital risk management of Company S has achieved the working capital risk management objectives.Finally,based on the identification and assessment results of working capital risk of Company S,we propose risk control suggestions from the perspective of value chain,which we hope will provide reference for other companies in pharmaceutical manufacturing industry.