Letv Group Financial Distress Case Analysis Based On Cash Flow Perspective

With the development of global economic integration,drives a series of rapid growth,rapid development of the external environment to promote the mode of operation of the enterprise operator more radical,cause enterprise scale constantly expanding,makes the enterprise gains are also growing,but at the same time also will increase the risk of facing,enterprises are in high risk environments.This dangerous environment is more reflected in the shortage of cash flow,which increases the risk of enterprises in financial difficulties.At this time,the management of cash flow is particularly important.This paper first summarizes the definition of financial distress,summarizes the causes of financial distress,and classifies financial distress.Through to letv information technology co.,LTD.(hereinafter referred to as: Letv)from 2013 to 2017,the cash flow analysis,respectively from operating activities,investing activities and financing activities of the research in three aspects,the status quo of financial distress on Letv groups are analyzed,combining financial information and non-financial information to cause Letv group researches in the cause of the financial difficulties,and to explore its source was in financial trouble,and then puts forward the effective countermeasure and the suggestion,points out that all the shareholders,the board of directors and senior management of modern enterprises can not only focus on corporate profits,and should be more focus on cash flow information,including dynamic and static information,Combined with the internal and external environment faced by the enterprise,the cash flow information provided by the cash flow statement is analyzed in depth,and a cash flow evaluation system is established to enable the prospective users of the financial statements to comprehensively understand the current real situation of the enterprise and ensure that the decision makers can make more favorable decisions.Finally,this paper summarizes the analysis results of the above cases,and puts forward further thinking to provide preventive measures and reference for other enterprises to prevent financial difficulties caused by cash flow shortage in the future.The deficiency in the research process is explained and the prospect of future research on cash flow management is proposed.