An empirical study on the correlation between enterprise working capital management and profitability

Abstract

capital is the core element of enterprise operation, and enterprise working capital management is closely related to enterprise profitability. This paper selects China's household electrical appliance enterprises as the research object, and constructs a multiple regression analysis model based on the data of household electrical appliance enterprises in China's Shanghai and Shenzhen A-share listed companies from 2016 to 2020, from the correlation between working capital investment and financing policies and enterprise profitability, the correlation between accounts receivable turnover period and enterprise profitability, the correlation between inventory turnover period and enterprise profitability This paper makes an empirical analysis from four aspects: the correlation between accounts payable turnover period and enterprise profitability, studies the correlation between enterprise working capital management and enterprise profitability, and puts forward relevant suggestions.