The Application Of Cash Flow In Enterprise Performance Evaluation

Enterprise performance evaluation is the base on which the relative interested of the enterprises make decisions. Enterprise performance evaluation consists qualitative evaluation, quantitative evaluation and etc. Among them, the evaluation of enterprises' debt-payment capability and income capability with financial ratios is the key field. And the debt paying ability is foundation and guarantee of the ability of an income. Now the existing evaluation indexes system of the enterprise performance evaluation is on basis of accountant profit, taking relevant indexes of balance sheet and profit flow table as core system mainly. As the capital market is developing and perfecting constantly, traditional index systems of performance evaluation have a lot of limitations for lacking the consideration of cash flows. Not obviously fit for the characteristic that "the cash is a king" of modern economy. Direct against traditional evaluation index system perfect, the paper has proposed evaluating the overall index model in performance based on cash flow in terms of cash flow, have carried on the positive research.Basic theories that this text introduces enterprise's achievement and appraises at first, have analysed the difference and reason and influence to exist between the accounting income and cash flow in real example on this basis.Secondly , set up models , the accounting income of the positive research and function in enterprise performance is evaluated of cash flow through building, defining the superiority that the cash flow is in evaluating enterprise's debt paying ability and income ability and playing a basic role further,Thirdly, analyze the current enterprise's performance and evaluate the defect that the system exists and reason produced on the basis of research of the above, propose evaluating the thinking in enterprise's performance based on cash flow, and then design the evaluative system of a set of cash flow index, combine original to appraise defect and deficiency of system, tructure one "based on cash flow enterprise performance evaluation overall index system".Finally, chose to study samples, analysed and examined the validity of the new evaluative system in real example.