Research On The Analysis Framework Of Cash-flow

The Global Economic Crisis,which triggered by the U.S.Sub-prime Crisis beginning from February 2007,makes the liquidity risk of all businesses expanding rapidly.How to program cash flow has become the most important problem of enterprise management.But Looking at the current domestic and international research on the cash flow,we can see that the academic achievements in cash flow information and the cash flow analysis methods had many shortcomings in Decision-making,the domestic situation is particularly serious.Specifically,the main questions including:Firstly,the classification of cash flows reflect in the cash flow statement ignored the new situation of our times,could not supply interrelated information about cash flow;Secondly,there was not a perfect cash flow analysis system,which got agreement by all,the majority researches of cash flow analysis focused on the business activities,but neglecting the cash flow analysis about investment activities,financing activities and other management activities,what's more nearly zero analysis scheme did a combination of strategy,so the cash flow analysis was often divorced from the managerial activities in addition to business activities,at last,the information value of cash flow was weakened.According to the situation of the economics and the shortcomings of the research on cash flow,we drawing on the multi-disciplinary theory analyzing approach from the characteristics of business life,basing on the life science research in the function of blood and the analysis of corporate cash flow,re-classified the cash flow into five categories:operating cash flow - "erythrocyte" of the enterprises' blood,investment cash flow - "leukocytes" of the enterprises' blood,free cash flow - "platelet" of the enterprises' blood,management of cash flow - "plasma" of the enterprises' blood,and the financing of cash flow - "blood bank" of the enterprises' blood.Then,we re-established the new cash flow statement to smooth the remaining work.After that, we build our cash flow analysis framework to supply decision-useful cash flow information for the management,which including two parts:the first part is strategic analysis(industry analysis,competitive strategy analysis and life cycle analysis), which is the basis of the second part;the second part is analyzing about the new the cash flow statement,which is the main part of the analysis framework.The purpose of the framework' building is to provide the right tools in carrying out enterprises' management in practice.With a view to help enterprises understand the economic information reflected by the cash flow information,to improve enterprise management,to create a better environment for survival and development.The innovation in research of this paper includes tow part:first,using Theory of Life Sciences on the function of blood to suggest improvements to the cash flow statement;Second,through the analysis of corporate strategy's impacting on cash flow,basing on the strategic analysis and the restructuring cash flow statement to build a more comprehensive and analytical framework for cash flow.