Corporate Financial Evaluation And Early Warning System Based On The Cash Flow

Financial evaluation and early warning system is a decision support system, with the analysis and evaluation on macroeconomic data and internal data, using evaluation indicators to forecast business development and the degree of risk in the future, the system helps companies predict the risk and manage to avoid it to reduce the loss. Evaluation focuses on the evaluation of historical enterprises operating conditions, it is used to determine the necessity of adjusting business strategies and other management. Early warning focuses on forecasting the underlying operational risks in time with the evaluation results. Evaluation functions and early warning functions complement each other. The core of the evaluation and early warning system is the indicator system. Before the 1970s, the indicator system was built as traditional financial indicators based on accrual basis. After that, with the popular of decision usefulness accounting objectives, the function of cash flow got more and more attention. Cash flow has many characteristics such as life cycle type, symbiotic, non-balanced, difficult to manipulation and so on. Practice has shown that cash flow indicators reflect business conditions better than the traditional financial indicators.This thesis introduces interrelated concepts of the cash flow, the principle and method of making up indicator system, the theory of financial evaluation and corporate early warning, including the fuzzy comprehensive evaluation, analytic hierarchy process, univariate and multivariate early warning. According to these theory, the thesis gives a detailed introduction on the design and implementation about the design requirements, functional architecture, technical architecture, integration architecture, database persistence layer, system security and so on. Finally, the thesis gives a practical application in a company using this system, generalize from the program's running result, the system reaches expected results. The development of Financial evaluation and early warning system based on cash flow is feasible.