Abstract: The basic problem of financial management is how to maintain the survival of enterprises, and

Ensure the development of enterprises. In view of this basic problem, people put forward two solutions.

One is a positive working capital management scheme, and the other is a zero negative working capital management scheme. this

These two schemes have their own advantages and disadvantages. This paper analyzes and compares these two schemes, focusing on the analysis.

The latter scheme.

[Keywords:] Working Capital Zero Inventory Zero Negative Working Capital Management There are two concepts of working capital: broad and narrow. The operations mentioned in this article

Capital is working capital in a narrow sense, which is the difference between current assets and current liabilities. operate

Fund management is of great significance to enterprises. Current assets have strong liquidity,

Can be used by enterprises at any time; Current liabilities are due debts of enterprises. Can they get paid on time?

Paying off the due debts directly threatens the survival of enterprises. Therefore, financial management

Personnel should pay close attention to changes in working capital. This paper will analyze and compare the traditional empirical studies.

Working capital management thought and modern zero-negative working capital management thought, and published some

Personal point of view.

First, the traditional working capital management ideas

1. The overall goal of financial management and its contradictions

The overall goal of financial management is consistent with the overall goal of enterprise management, which is nothing more than survival.

And development. From the financial point of view, maintaining the survival of enterprises means that they must be able to pay.

Maturity debt To this end, enterprises must hold a certain amount of current assets to repay the flow.

Current liabilities. There are many indicators in classical financial management to measure the short-term solvency of enterprises.

Force. The current ratio (current assets/current liabilities) is a commonly used indicator. It is generally believed that

It is safe to keep this ratio around 2. The profitability of an enterprise determines the enterprise.

The development of industry. If an enterprise can only maintain its original scale, it cannot expand its regeneration.

Production, then the enterprise will lose the meaning of existence. In other words, the Enterprise

Must have a certain profitability.

From the point of view of financial management, the survival of enterprises is the premise of development, but the dimension

There is an inherent contradiction between survival and development. The core of this contradiction lies in

The liquidity of assets is inversely proportional to their profitability. The so-called liquidity of assets refers to it

The stronger the liquidity of assets, the higher the liquidity. So-called assets

Profitability refers to its ability to bring future economic benefits and the future economic benefits that assets can bring.

The more economic benefits, the stronger its profitability. For an asset, it has strong liquidity.

This means that assets can be realized at any time to perform their functions as means of payment.

In other words, the owner of an asset must hold it in his hand instead of investing in it.

Production. For an extreme example, if someone has a certain amount of cash, it is the same as

When he has a certain amount of debt to repay at any time, then he can't spend the cash.

Go, but only in your hand, ready to pay your debts. If an asset is only held and cannot

If put into production, it will not bring any economic benefits. It's like putting cash in.

If you don't put it in the bank or invest it in your pocket, the amount of cash won't be generated.

There is no profit if there is change. Therefore, the stronger the liquidity of assets, it

The less profit there is. To maintain the survival of enterprises, it is necessary to maintain the liquidity of assets and seek enterprises.

The development of the industry needs to maintain the profitability of assets, which is between the liquidity of assets and their profitability.

There are irreconcilable contradictions, so the two goals of enterprise financial management exist.

There are inherent contradictions. How to solve this contradiction has become the core task of financial management.

2. Active working capital management thought and its limitations

In order to coordinate the contradiction between the survival and development of enterprises, the traditional working capital management thought

I think working capital should be kept above zero, which is called positive working capital management.

Think rationally. The theory of positive working capital management thought is: maintaining working capital at a positive number can ensure the repayment of due debts and maintain the survival of enterprises; Simultaneous liquidity

The output should not be kept too much to maintain a certain profitability, and then seek the development of the enterprise.

Exhibition. The flow ratio 2 mentioned above is the concentrated expression of this idea.

Current ratio is the ratio of current assets to current liabilities, and ratio 2 represents current capital.

Output is twice that of current liabilities. In this way, it is enough to offset current liabilities with current assets.

In order to meet the needs of debt repayment, as long as the current ratio is 1, why?

What about 2? The main reason is that current assets include inventory, which is usually working capital.

Half of the total output, and the liquidity of the inventory is relatively poor, so it cannot be used to repay the flow.

Current liabilities, so the current ratio should be 2 instead of 1. In addition, the flow ratio is 2.

The reason is also that maintaining a certain amount of liquid assets can realize the purchase of production funds at any time.

Material, is conducive to grasp the business opportunities. Generally speaking, it is not good to have a current ratio greater than 2. big

In 2, it shows that excessive retention of current assets is of course conducive to maintaining the survival of enterprises.

Yes However, poor profitability of current assets and excessive retention of current assets are beneficial to enterprises.

Profits will be reduced accordingly, which is not conducive to the development of enterprises. So that the flow ratio is kept at 2,

It can not only maintain the survival of enterprises, but also take into account the development of enterprises.

On the surface, the positive working capital management thought has solved the survival and development problems of enterprises well.

The contradiction of exhibition. However, with the development of modern management theory and computing technology, it is running.

The limitations of capital management thought are gradually emerging.

First of all, the active working capital management thought regards assets and liabilities as static and real.

Internationally, assets and liabilities are constantly changing with time. Enterprise capital

The balance sheet is a static statement, and the ratio calculated according to the balance sheet is also static.

Static indicators. But the economic activities of enterprises are not static, and the so-called survival and development are

Survival and development of sports. This is also the most fundamental concept of working capital management.

Mistake.

Secondly, the idea of active working capital management thinks that the profitability and solvency of enterprises

There are inherent contradictions between them, which can only be reconciled but not solved. This is just a contradiction.

One-sided view of opposites fails to see the identity of contradictions. This is rooted in static information.

Concepts of assets and liabilities. In fact, the solvency of enterprises is guaranteed by profitability.

Profitable enterprises can generate profits, and profits increase assets. Sustained profits create assets

Can continue to increase, so that debt repayment is guaranteed. Although loss-making enterprises have

There are many current assets, but losses reduce assets, and continuous losses make enterprises

The assets of this industry are decreasing. This kind of enterprise can only repay temporary debts. In the long run,

Generally speaking, it is impossible for a loss-making enterprise to maintain its ability to repay its due debts for a long time. One day,

It will go bankrupt because it can't pay its due debts.

Third, the traditional theory holds that enterprises must have a certain amount of inventory, and the inventory

The company's liquidity is poor, and the current ratio should be kept at around 2, and the enterprise can guarantee it.

Solvency. Modern zero inventory management methods make us realize that enterprises can do without or

Those who keep little inventory, that is, the current ratio can be much less than 2, close to 2.

At 1, the working capital is close to zero.

Second, the concept of zero negative working capital management

In view of the limitations of active working capital management thought, zero negative management has emerged in recent years.

Thought of fund management. This view holds that the working capital of an enterprise can be zero or even zero.

It can also be negative. In other words, the total current assets of an enterprise can be less than the current negative number.

Total debt. Therefore, enterprises can only keep a few current assets with poor profitability, and

Put more money into profitable fixed assets. Obviously, enterprises

Our profitability has improved, but the risks have also increased. So zero negative working capital

Gold management thought emphasizes the profitability of enterprises and is a kind of risk management thought. or

It can be said that zero-negative working capital management thought is an extreme financial management thought.

So, does this new management idea ignore the solvency of enterprises?

The answer is no.

First, the total current liabilities are not equal to the total debts due, not all.

Current liabilities must be repaid at the same time. Therefore, financial personnel can effectively transfer funds.

Reasonable arrangement of debt repayment plan. Specifically, financial personnel should first focus on research.

The nature, amount and repayment time of each current liability. Next, the financial personnel should

Make capital plan according to sales forecast and production forecast. Finally, financial personnel should be rooted in

According to the results of the above two steps, make full use of commercial credit, bank credit and other financing hands.

During the period, carefully formulate a debt repayment plan. In this process, the accuracy of sales forecast has been improved.

Play a vital role. If the result of sales forecast is obviously optimistic, then

The survival of enterprises will face greater risks. Therefore, when an enterprise makes a sales forecast,

Try to be cautious.

Second, as mentioned above, the profitability of an enterprise is the fundamental guarantee of its solvency.

Certificate. The idea of zero negative working capital management emphasizes the profitability of assets, from one aspect

It is also emphasizing the solvency of enterprises. There is a problem here, that is, how to obtain it.

Creditor's trust. Enterprises implement zero-negative working capital management, which is reflected in the statements.

The flow ratio is less than 1. This will easily make creditors pregnant with the solvency of enterprises.

Doubt. After all, enterprises can't force people who read statements to master zero-negative working capital management thinking.

Yes From a practical point of view, you can contact the profitability indicators in the notes to the statements.

Explain the solvency of the enterprise.

Third, zero inventory management plays an important role in zero-negative working capital management. transmit

Generally speaking, inventory usually accounts for half of current assets. This is also positive.

A theoretical support point of working capital management thought. Therefore, if we want to improve the profitability of assets,

Sex, working capital will remain negative, which requires accelerating inventory turnover and making full use of sales.

Sales forecast, fixed production by sales, maintaining the so-called "zero" inventory (actually slightly greater than zero

Inventory).

Fourthly, the concept of zero-negative working capital management is different from that of positive working capital management.

Completely incompatible, there is an internal connection between the two. Whether it's liquidity.

Both management thought and zero-negative working capital management thought are aimed at solving the survival and development problems of enterprises.

The contradiction between them provides a solution. The concept of active working capital management is more traditional

The development of financial management thought has gone through a long process. For a long time, people can

Agree with the idea of working capital management, which shows that this idea is reasonable. about

Most traditional enterprises should still adopt the active working capital management concept.

Financial management. Zero-negative working capital management is not a new concept, but an initial positive operation.

The concept of fund management is out of date. Whether it is the current enterprise or the original enterprise, face

The two major problems are still survival and development, and the core contradiction is still the liquidity of assets.

The inherent contradiction between it and its profitability. Solutions provided by the concept of active working capital management

The scheme is relatively stable.

Third, the feasibility of zero negative working capital management concept

Obviously, zero-negative working capital management is a risk management idea. Therefore, and

Not all enterprises can use this management method. The author believes that it has the following characteristics.

Enterprises suitable for zero-negative working capital management:

1. The enterprise has a high level of management and good quality of financial personnel, and can accurately predict profits.

Situation, reasonable arrangement of debt repayment plan.

2. The business risk of the enterprise is small, and the profit of the enterprise is relatively stable.

3. The enterprise has high credit. On the one hand, enterprises can rely on it when necessary.

Good financing credit; On the other hand, creditors who read the statement (including potential

Creditors) will have lower requirements for liquidity ratio.

4. The enterprise has good cost control ability and can realize zero inventory.

Four. conclusion

There are contradictions between the two major goals of financial management (survival and development), which makes sense.

Working capital management thought and zero negative working capital management thought solved this contradiction respectively.

Come up with your own plan. Some enterprises that meet certain conditions can choose zero negative working capital.

Management ideas, maximum debt management, in order to seek the maximum utilization of funds. but

However, no matter how to control it, there are still great risks in zero-negative working capital management. because

Therefore, enterprises should carefully consider this fund management strategy.