Study On The Financial Evaluation Of Highway Enterprise Based On Cash Flow

Highway is an important part of the vision in the construction of ―two highway system‖. With the deepening of the reformation and opening up, C hina’s highway has got rapid development. It has made a great contribution to our national economy. But the highway also exposes various problems. In the face of the special features of the highway, highway enterprises are facing severe debt problem, toll rate and fixed number of year of the charges. In order to adapt to the development of highway, we understand the financial condition of the highway enterprises in time. This artic le researches from the perspective of cash flow to evaluate highway enterprise financial condition. It can provide the theoretical basis and practical significance for the health of the highway enterprise sustainable development.The basic theory of cash flow and the highway enterprise cash flow are discussed in this paper. It elaborates the connotation, features and internal requirement of the highway enterprise cash flow. At the same time, it illuminates the highway enterprise value orientation, financial goals and the significance of financial evaluation from the cash flow point. The particularities of highway enterprise cash flow are analyzed. On this basis, cash flow indicators are classified by the attention and the most value of highway enterprise cash flow of different levels from creditors, investors, managers and other stakeholders. It establishes the financial evaluation index system through theoretical analysis, analytic hierarchy process(AHP) and combining qualitative analysis with quantitative analysis. App lication of principal component analysis(PCA) builds the model of highway enterprise financial condition evaluation. It evaluates the financial condition of enterprise from the perspective of cash flow by the methods of empirical analysis, comparative ana lysis and others. Finally studies have shown that it is feasible to evaluate highway enterprise financial condition from the perspective of cash flow, and provides reference for our country highway enterprise financial condition from the perspective of cash flow.