The Research Of Cash Flow Management Based On Value Creation

Although the development of China’s capital market is in the early stage and not yetmature, but more and more China’s enterprises introduce and adopt western advancedmanagement concept and successful experience. The enterprise choose the marketmechanism and the enterprise operation pattern more match with market changes. Underthe situation of changes in the domestic market, it is particularly urgent and necessary tospeed up the electric power industry structure adjustment and optimize the upgrades ofenergy resources. This need to strengthen internal management, pay attention to theenterprise and the market relations and it is necessary for the requirements of economicmarketization development, As the core of the enterprise business activities, cash playsmore and non-replaceable role in the business and financial management. Therefore, freecash flow received widespread concern and attention, because it can create value forenterprise.This article first introduced the thesis research background, significance, purpose andresearch methods. Second, choosing A company as the research object, according to thetheory of free cash flow and enterprise value assessment theory, the influence factors ofvalue creation can be found by means of cash flow progressive analysis of A corporateentity components. The problems existing in the management of cash flow of A companywere pointed out combined with analysis of the cash flows statement. On this basis, theimprovement of cash flow management and enterprise creation value model of A companywere established: creating value with cash flow management as the goal, increasing theenterprise value by the increases of cash flow in the existing assets, the optimization offinancing decisions and asset structure and the corresponding management measures ofcash flow.Through the study of this article, practical operability suggestions can be given to Acompany in cash flow management and deficiency and the enterprise value can beimproved. A significance reference case can be provided for other relevant enterprisesabout cash flow value analysis.