Evaluation Of JC’s Working Capital Management Performance Based On FAHP Method

With the high number of public health incidents and increasing consumer demand,the food manufacturing industry is facing unprecedented challenges,with many companies experiencing backlogs and difficulties in recovering payments due to poor working capital management,which could end in bankruptcy if not addressed in a timely manner.JC Foods is a modern,integrated food manufacturing company that combines research and development,production,wholesale and retail,and has always been well capitalized but poorly profitable.In this thesis,we analyze and evaluate the working capital management and performance of JC Foods in the food manufacturing industry to identify problems and improve working capital management.In order to better evaluate the working capital management performance of JC Company,the thesis uses Fuzzy Hierarchy Analysis(FAHP)method to construct a new working capital management performance evaluation system from the perspective of feasibility.Combining the characteristics of the food manufacturing industry and the actual situation of JC Company,nine financial indicators and three non-financial indicators were selected and weighted using the hierarchical analysis method,and the final evaluation results were obtained using the fuzzy comprehensive evaluation method.The analysis found that: JC’s relatively low investment in innovation and research and development in the same industry,the increasing proportion of credit sales to large customers year by year in order to establish a good relationship with them,the active payment of accounts payable,which led to the poor utilization of this part of the capital,the relentless efforts to expand the sales market,and the high costs all the time,all these problems caused JC’s poor profitability and restricted the company’s sustainable development.In order that the new evaluation system can be implemented smoothly,performance evaluation safeguards are proposed for JC Company: strengthening the study of working capital management performance,establishing the correct concept of working capital management performance,strengthening the performance management supervision mechanism,designating a communication and feedback system and asking professionals to guide the evaluation system.The thesis study aims to help JC identify the problems in its working capital management and target them in its future daily operations to help JC’s strategic development.