Research On The Issues And Countermeasures Of Cash Flow Management In J Company

Hydropower industry is the basic industry of China’s national economy and social development,and it is also an important direction of the development of renewable energy in China,at present,the hydropower industry has become the main force in the development of electric power industry in our country.As the largest source of clean energy generation in the world,there are a great number of countries which attach great importance to the development of hydropower industry.At the same time,they put forward the proposal of "One Road and One Belt" in the present state,which makes a large number of hydropower enterprises"go out".On the other hand,for hydropower construction enterprises,which is the most basic unit in hydropower industry,it can’t avoid having all the features of the construction industry.At the same time,it also has the special nature of hydropower construction industry,so that there are lots of hydropower construction enterprises which are in the face of the difficult situation of cash flow,which has a great influence on the stability and internationalization process of the daily operation and development of the enterprise,therefore,it is imperative to optimize the cash flow management of hydropower construction enterprisesTaking J Company as the research object,the research and analysis to its current cash flow management system is carried on,and its 2014-2017 financial data with that of the construction industry are made a comparative analysis of horizontal and vertical in the paper,which is considered that lacking of forecasting and early warning mechanism that matches industry and company cash flow characteristics,the cash flow management system of J Company needs to be improved,the effect of cash flow management is not good,and there is great financial risk.By the combination with the present situation of cash flow management in J Company and the characteristics of hydropower construction industry,it is believed that the cash flow budget management system of J Company is not perfect enough,the structure of cash flow is unreasonable,the concentration of funds is not enough,and the proportion of accounts receivable inventory to assets continues to increase,and other problems in which the causes of these problems include insufficient attention paid by management to cash flow,single fund-raising structure,inadequate risk prevention at the level of foreign exchange management and high complexity of cash flow management in hydropower construction industry.With regards to further research,there are five suggestions that are put forward,such as making prediction and early warning mechanism for J company’s cash flow characteristics,improving the cash flow budget system of J Company,increasing the diversity of financing channels,improving the cash flow structure,strengthening the overseas project management and centralized fund management and strengthening the pressure drop of accounts receivable and inventory,which can be used for reference to improve the efficiency of capital use,reduce the financial risk and enhance the competitiveness of J Company.