The Best Cash Holding Management Research On Y Company

Cash is the capital that temporarily stays in the forms of currency during the process of enterprise production and operation of the company,it is the most liquid asset with the most direct purchasing power and solvency,cash held by ordinary companies should meet the demand of transaction,precautionary demand and speculative demand.These three basic requirements are the goals.A moderate amount of cash holding is an effective guarantee for the normal operation of the company.However,excessive cash holdings will cause waste of resources and increase the holding cost.The lack of cash holding will expose the companies to the risk of capital chain fracture and affect the normal operation of the company.With the development of economy in our country,the corresponding has also changed in retailing,in addition to the past single store and single store mode,is more of a chain operation,large-scale management and diversification.For retail companies,from cash to inventory to cash and frequent cash transactions,cash management is particularly important for retailers.At the same time,due to the nature and characteristics of the retail enterprises,it is the key to ensure the safe,reasonable and efficient use of cash,which is to maintain the smooth operation and development of the whole enterprise.Y company as a pharmaceutical retail chain company,the cash balance changes a lot,with the current industry prospects and the company's operating conditions,the future development of great potential is expected to the accelerating cash flow velocity and flow rate will continue to increase.Under this background,this paper takes the research on cash management at home and abroad as the theoretical basis,and takes Y company as the foothold.It introduces the current status of cash flow management of business activities,investment activities,financing activities and cash in the company's cash holdings management and the stock of cash management.Through the analysis of the quantitative indicators for the company over the years,the cash flow related indicators in the longitudinal comparison and the horizontal comparative to analysis of the industry,found the company in cash flow management which is cash circulation velocity is slow,that is,the cash circulation turnover is slow,and low utilization rate is the cash holdings of cash or stock at that particular moment with the problems such as low usage rate.For the existing problems,exploring the causes of their problems,and summing them up are mainly due to the company's weak cash flow management consciousness,cash holdings management fails to go deep into the business process,the lack of inventory,accounts receivable,accounts payable and other flexible management of funds;no accurate measurement of optimal cash holdings;lack of investment activities,inadequate management of fund-raising activities and other reasons.To solve these problems,according to the characteristics of Y company,the management plan of optimal cash holding is put forward.The model is used to measure the optimal cash holding of the company;adjust the cash holdings from the business links,adjust the payment and receipt system,strengthen inventory management,and improve the cash flow efficiency;Make reasonable fund arrangement for operation,investment and financing activities to improve the efficiency of fund use.Thus,the effective cash balance management will be achieved,so the companies can achieve the best level of cash holdings.