The Early Warning Of The Corporate Financial Crisis Based On Cash Flow

Economic globalization has brought unlimited opportunities for Chinese enterprises,but at the same time it has also caused companies to face unprecedented crisis.The financial crisis in 2008 triggered a wave of corporate bankruptcies worldwide.Losses,debt crises and bankruptcies among many SMEs caused huge losses to creditors and shareholders and other stakeholders.Enterprise risk exists objectively,and the process of survival and development of the enterprise is a process of preventing and resolving risks.Emphasizing the need for crisis prevention.Enterprises should have a sense of crisis,prevent the crisis in the daily production and management process,in order to reduce the uncertainty of the development of enterprises,and enhance the viability of enterprises.This article first sorts out domestic and foreign literature,Select the financial indicators in the “Corporate Performance Evaluation Index System in 2016”,which includes traditional financial indicators and cash flow indicators.Collect relevant information such as annual reports of A-share listed companies in China,Data are classified,compiled,and statistically analyzed.Statistical models such as the one-sample K-S test,the Mann-Whitney U test,correlation analysis,and factor analysis are used to construct corresponding mathematical models.Establish a financial crisis warning model.Next,the financial crisis warning model was applied to XCMG,not only as an early warning model,but also as a scoring model.Use this model to predict the XCMG company's performance in 2018.Then,cash flow indicators are used to analyze the forecast results combined with internal and external conditions and the environment.Finally,suggestions are given for the problems that have emerged.This article is based on the financial crisis warning model established from the perspective of cash flow.Cash flow information and financial warnings are organically combined on the cash basis,which effectively improves forecasting accuracy.The establishment of a financial early warning model suitable for Chinese listed companies has certain significance for the exploration of domestic and foreign listed companies and the establishment of a financial crisis warning.In addition to the above analysis,a representative XCMG company listed in Chinese listed companies was selected as a research case,and the financial crisis warning model under the perspective of cash flow was applied to XCMG.It provides reference for other listed companies to use the model.