Research On Optimal Management Of Cash Flow For JK Company

As an important constituent part in enterprise assets, cash has great significances to healthy growth of enterprises. According to cash basis, cash flow represents a situation of cash inflow and outflow and reflects the financial situation of enterprises. Cash flow management aims at decreasing idle cash, increasing its service efficiency and finding an equilibrium point between risk and profit in order to maximize the use value of cash.Optimal management of cash flow contributes to controlling enterprise financial situation in a better way, which is of benefit to sustainable development. In recent years, the development of pharmaceutical industry has slowed down, which depends a lot on cash,resulting of the economy depression in our country. Therefore, this thesis studies cash flow management of JK company in recent three years.Based on the domestic and international research of cash flow management, the current situation of cash flow management in JK company is analyzed. Firstly, the general situation and operation state of JK company are introduced. And then, the managements of cash flow velocity, receipts and disbursements, budget, quality and so forth are analyzed both in qualitative and quantitative way. Drawbacks are found in cash management of JK company,which needs to be optimized, comparing with other companies in pharmaceutical industry.Several problems in cash flow management of JK company are concluded, such as lacking of strategic thinking, omission of flow supervision, imperfect risk pre-warning system, and incomplete budget system. To solve problems above, some optimization measures for JK company are proposed, such as strengthening strategic management, internally piloting management, perfecting risk pre-warning system and science budget, in case of capital chain rupture, insolvent matured debts, and cash squeeze, so as to ensure the normal cash circulation and promote the sustainable and healthy development of company.