Study On Cash Flow Difficulty Of Railway Joint Ventures

Railway joint venture cash flow convergence is not only a financial problem,but also an economic issue.This paper studies the connection problem of cash flow of railway joint venture from the accounting and economic perspectives respectively.The aim is to find out the fundamental factors which affect the connection problem of cash flow of the joint venture company,so as to solve the problem of cohesion of cash flow.First of all,the paper defines the joint venture cash flow connection problem,determines the object of study for the national railway holding company,and then introduces the basic situation of China Railway Holding Company and cash flow convergence.Then,according to the factors influencing the cash flow connection and the characteristics of the joint venture,an appropriate index system is established.The factor analysis method is used to establish the cash flow evaluation model.The scores of the factors and the weights of the indicators reflect the cash flow.Among these factors,cash flow interest coverage ratio,cash flow debt ratio,operating cash inflow and outflow ratio,total cash inflow and outflow ratio,and total assets cash recovery rate take larger proportion than others.Based on these five indicators,the economic factors influencing the Company's business activities,fund-raising activities and the company's overall cash flow are analyzed fundamentally from the perspective of economics.That is to say,passenger,cargo,the public welfare transportation and the principal-agent relationship are the root causes which affect the cash flow of the company's operating activities.The capital structure and the shareholder's disagreement are the root causes of the cash flow of financing activities;government fiscal policy,the lack of mechanism is the economic factor influencing the company's overall cash flow.Finally,through the analysis of various factors' mechanism,put forward specific countermeasures and policy recommendations are put forward,in order to provide ideas about solving the problem of cohesion of cash flow.