Working capital is an important part of a range of economic activities, such as manufacturing and business operations. All aspects of an organization's operations involve the use of working capital. Effective working capital management plays an important role in the survival and development of enterprises. Through the study of working capital management of Baosteel Co., Ltd., this paper analyzes the structure of working capital of Baosteel Co., Ltd. and the efficiency of using working capital. The analysis of working capital efficiency includes inventory turnover speed, accounts receivable turnover speed, cost and expense ratio. It is found that Baosteel's working capital structure is unreasonable and the efficiency of working capital is low. The problems of low working capital use include slow inventory turnover, slow turnover of accounts receivable, lower cost-to-cost ratio, etc. To solve the problem, so that its enterprises get better long-term development.
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