Cash Flow Management And Analysis

The importance of cash flow for company is similar as that of blood for the human body, the idea of'cash is king'has been thorough public, so the domestic scholars and scholars aboard have proceeded a lot of efforts on the research of cash flow. Compare with that aboard, the research on cash flow management in our country has less depth. In actual situation, all aspects of problems on cash flow management exist in the companies in our country. Cash flow management is weak. The basic reason is because we haven't really understanding the purpose of cash flow management or the relationship among cash flow management, enterprise value and enterprise strategy, because of this, cash flow management lacks direction. This situation causes cash flow management as if lacking unity. In order to improve this situation, the author wants to set up a cash flow management and analysis frame in this essay. That frame must regard promoting the value as the target of cash flow management and that is the logic point of departure of the frame, the frame must follow the principle that cash flow management should be done according to the enterprise's strategy, and with the business enterprise value creates path as path. When it comes to the contents, that frame includes four parts: 1.the control on the level of the company's management and system. The author thinks on this level the company should adopt the cash flow management concentrates control mode; 2.the arrangement on the level of the company's operation; 3.cash flow analysis; cash flow analysis should be divided into three steps: step 1, cash flow construction analysis; step 2, cash flow further reading; step 3: The ratio analysis of the cash flow; step 4, the extension of cash flow analysis, in this step, the author give some suggestion on the improvement of the evaluation method of the company's value.The corpus of the essay contains four chapters: Chapter 2 to chapter 5. In chapter 2,the author describes the research history and current research of cash flow management, and discusses the relationship among cash flow management, enterprise value and enterprise strategy. By doing this, the author hopes to construct the theorybase of the cash flow management and analysis frame. In chapter 3,the author sets up the cash flow management frame. In chapter 4,the cash flow analysis frame is constructed. Chapter 5 is the extension of cash flow analysis; the author gives some suggestions about how to improve CFDM.