Research Based On Cash Flow In The Financial Risk Warning

With the development of economic globalization, the impact of the wave of economic globalization. face increasing pressure of market competition era of the knowledge economy, the increasingly fierce competition among enterprises. enterprises are facing growing uncertainty. cash sales until the realization of the recovery In the series of aspects of the adequacy and effectiveness of cash will ultimately have an impact on the survival, development and risks. This paper seeks to establish a cash flow basis for early warning of financial risks. financial risk warning methods to solve the current problems and financial information distortion caused by the financial failure warning.In this paper, from a financial background and significance of the warning, on the early warning of the domestic economy—and the corresponding theory expounded the concept of early warning and financial characteristics. Next, from the business activities of the enterprises. Financing for the management and investment of a detailed analysis of cash flow management, and other aspects of the financial risks, Based on a preliminary framework for enterprise cash flow and the financial early warning system. In the third chapter of the financial risk early warning methods and models for the analysis.The empirical part of the pharmaceutical industry to elect its first empirical analysis Edward Armando using multivariable model Z points, and use five times to protect cash flow targets Model basically coincide with the actual test results. Secondly, the traditional indicators of the financial system and the cash flow warning system indicators of comparative analysis, By selecting the Shanghai stock market in 2004 and the 1355 companies listed on the Shenzhen stock market data pm analysis, come consolidated cash flow indicators of the performance evaluation system after more than just the traditional performance evaluation system for listed companies into Bank warning financial results conclusions.Finally, this article on the establishment of an early warning system based on the cash flow of financial risk a conclusion and made a recommendation.