Analysis of Accounts Receivable Issues at Vanke Co., Ltd.

Abstract

Amidst the increasingly competitive real estate industry and the complex and ever-changing market environment, accounts receivable management has become a critical factor affecting corporate liquidity, financial stability, and sustainable development. As a leading enterprise in China's real estate sector, the accounts receivable management status of Vanke Co., Ltd. holds significant industry representativeness. Based on Vanke's financial data from 2019 to 2023, this paper analyzes its current accounts receivable management situation from dimensions such as accounts receivable turnover ratio, turnover days, proportion of receivables, and bad debt provisions. It reveals issues including continuous growth in accounts receivable, increasing bad debt risks, extended collection periods, insufficient internal controls, inadequate customer credit management, and inefficient collection mechanisms. In response to these problems, this paper proposes measures such as strengthening customer credit management, improving sales contract systems, clarifying collection responsibilities, enhancing the accounts receivable turnover ratio, and reinforcing internal controls and risk early warning mechanisms. The aim is to provide references for Vanke to optimize its accounts receivable management and reduce financial risks, while also offering insights for the accounts receivable management practices of other enterprises in the real estate industry.