A Cash Flow Management Research On Wohua Pharmaceutical Company

With the economic globalization and the increasing competition in the market,the importance of financial management is gradually reflected in enterprise management.Cash flow is the focus of enterprise financial management.It is composed of three aspects of cash inflow and outflow from business operation,investment and fund-raising.Its characteristic is that it is the existing cash balance of the enterprise.It can be used at any time when the enterprise has cash outflow activities,which can truly reflect the profit of the enterprise.For their long-term development,more and more enterprises begin to attach importance to the management of cash flow.Different industries and types of enterprises,for cash flow management due to their own specificity and operating characteristics will be different.As an everlasting sunrise industry,the pharmaceutical industry is closely related to the development of the national economy and people's lives.During the "twelfth five-year plan"period,modern Chinese medicine and biomedical technology has been listed as a key development project.In the process of development,enterprises need to invest a lot of research and development funds.Cash flow is very volatile and difficult to predict.In all stages,a large amount of funds are needed to support the operation.It is a typical high-tech enterprise.In addition,with the continuous deepening of medical reform,the shortage of pharmaceutical innovation and research and development of pharmaceutical manufacturing enterprises has gradually emerged,which put forward higher requirements for the management level of cash flow.After analyzing the theory of cash flow management,with the financial data of nearly five years,the paper analyzes the overall situation of cash flow management on Wohua pharmaceutical company from three aspects of trend change,structural change and index change.And compared with the financial data of two excellent companies in the same industry,from cash profitability,cash solvency and cash payment capacity three aspects of horizontal analysis,fully understand the current situation of cash flow management.Through further analysis,we find the problems in cash flow management and trace the causes of these problems,and put forward the corresponding solutions.The purpose is to improve the efficiency of the use of cash flow in the target company,reduce the risk of capital flow,to ensure the safety and stability of funds,in order to reduce the cost of the company.It is beneficial to the company to get a dominant position in the fierce market competition,and can better develop a long-term financial planning.This is not only beneficial to the target company,but also applicable to other company in the pharmaceutical industry.