The Company Financial Cycle Analysis

Business cycle is viewed as a cycle of macro-economy fluctuation of a nation or an area, and the index includes economic growth rate, inflation rate, people's income, consumption and savings, currency issued in circulation, foreign exchange accounting. Accordingly, the literatures about business cycle are abundant. But these literatures are all about research on growth rate of GDP, inflation rate, employment, currency issued in circulation and balance of international trade except Joseph A. Schumpeter's Inquiry into Business Cycle. In fact, Business Cycle is relevant to an individual entity especially. Before macroeconomics was established, people had found and research on business cycle theory for about 70 years. So, business cycle includes micro business cycle and macro business cycle indeed. While there is no research on cycle of corporation finance in the aspect of value and financial theorem, rule and skill during the different phase during business cycle (or financial cycle).Science of enterprise management focuses on lifecycle of an enterprise today. This research is usually on lifecycle of structure design, system evolution, framework changing, technology and market of product, and so on. But research on lifecycle of enterprise in aspect of capital and value is just on the threshold.In this thesis, finance cycle and other relevant concepts e.g. financialreaction, financial evolution, financial ebb, value flow and financial efficiency are brought forward. We analyze the characters of different phases during the financial cycle and deduce the right financial rules in the cycle. Furthermore, we set up the model of forecasting financial cycle and form the framework of finance cycle theory. The thesis "The Research on Finance Cycle" is very important because the finance cycle theory blaze a way to a new field in micro-economics and management in the method of value analysis, brings forward some new concepts about finance cycle, optimizes finance theory. Entrepreneur can make different financial strategy according to the condition during the finance cycle.Research route and viewpoints:(1)Business cycle is the external variable of corporation's finance cycle, and enterprise lifecycle is internal variable. finance cycle has its' rule to follow.(2)The new concepts include financial reaction, element capital, the reorganization of value flow. The theory of financial evolution, financial expansion, financial ebb and value making constructs the main part of the theory of corporation finance cycle.(3)In the theory of corporation finance cycle, we set up the different models of finance during the business cycle (flourish, stagnation downturn, and recovery) and enterprise lifecycle (expansion, pinnacle, constringency, and bankruptcy). During the different phases, element capital and valuemaking have different characters.(4)On the basis of the theory, we form the model of forecasting finance cycle. Finance cycle is the base of business cycle and reflects the business cycle. Studying on seasonal changing of production element value, we can optimize management.Finance cycle is the cycle of changing of an enterprise's value. The independency of finance engenders independency of finance cycle. So finance cycle has its' own rules to follow. There is close relation between Business cycle, enterprise life cycle and corporation finance cycle.Main content of the thesisIn chapter 1, we talk about the background and reasons of the research, opinion on literatures, ways and means of research, main point view.In chapter 2, we form the system info of theory of finance cycle by deep analysis. First, we inquire and summarize the various appearances of cycles witch include the cycle of current assets circulating, fixed assets circulating, and financial reaction to product lifetime, business cycle and forward the concept of "finance cycle": the cycle of fluctuation of financial position i.e. the cycle of the fluctuation of financial value of a corporation. Secondly, we analyzed the interact...