Research On Analysis And Applying About Cash Flow Rate Of The Business Value

Studying the change of cash flow is a main content of modern financing. Cash flow can directly reflect the ability of paying a debts, obtaining profits, and financial elasticity of business, which can be judged financial condition of business and predicted input and output cash flow business and predicted input and output cash flow in the future business. The article elaborates that we should set up cash flow concept in our finance management with definitions and current analysis of "cash flow". One hand ,The article elaborates status and function of cash flow is important to business operating .on the other hand, it also elaborate how to evaluate the value creating ability of a company based on the cash flow information and other information relater to cash flow. Compared with the other indexes such as share profit calculated based on accounting, it can reflect all the factors of value completely and accurately. The paper takes it as a core important factor and analyzes the value creating ability with the cash flow indexes analyzing model.The content of the paper including:Part 1, the introduction of some concepts on cash flow , cash flow sheet, principles of accounting and the function and purpose of cash flow sheet. The concepts introduced including cash, and the equal value of cash, cask flow, and business value, the domestic and foreign background of accounting principles. Thispart is the base of the whole analyzing.In pat 2, it introduced the financial sheet analyzing and the indexes of analyzing. It emphasized the importance of cash flow analyzing from the financial sheet analyzing to cash flow analyzing. It presented the studying of value evaluating the difference of value evaluating from net profit indexes to cash flow indexes. Then it emphasized the importance of cash flow indexes analyzing.Part 3, the paper presented the studying status of cash flow analyzing, the analyzing methods and the indexes used in the article.Part 4, it presented the introduction of the target company and the model of cash flow evaluating, the result of the model, analyzing the result of the model. Part 6, analyzing the shortage and deficit of the paper.