The Study On The Management Of Cash Flow About Ak Company

Cash is one of the most important asset to the enterprise,Cash flow which is formed by the cash inflow and outflow.Cash flow is one of results of the enterprise operating and decides the enterprise's survival and development ability in a great extent.if a enterprise have profit ability,but cash flow is not smooth.It will seriously affect the enterprise production and operation.At present,many company which in trouble due to the threat of cash flow.The collapse of famous enterprise Barings bank is an example.The famous company Giant Group be forced to bankrupt for the reason of emergency fundsThe AK company that this paper researched is belong to the oil extractive industries.It devotes to designing and producing digital oilfield drilling equipment.After many years of hard work,It became the one of GEM companies which from Agency share transfer system.the company's operating income and net profit has increased steadily.But AK company was criticized as an Misappropriating corporation by financial media in the process of listing.The main reason of criticism was the cash flow problems.From the analysis of the AK company's cash flow status,we can found the operating cash flow come down year by year and exist shortfall.From the analysis of cash flow index,the company's profitability and solvency and operation capacity are falling.By further analyzing the present situation and problems of the management of cash flow,AK company's cash management system is improved.But it is can learned several problems exists in concrete management process.First,the company in a weak position in relationships with customers,then accounts receivable completely depend on their customers' financial settlement time.Second,in the Link of inventory,inventory turnover is very slow.Raw material's overstock lead to cash occupation.Final,In the departments of payable account,the company's management strategy is delayed payment.There is no systematic management system.This problem leads to exist shortfall in operating cash flow.AK Company have to rely on financing to meet the operation.AK Company choose short term borrowing,but some problems in borrowing time and the use of rested borrowing money.In order to solve the problems of cash flow,this paper offer optimization Suggestions in the operations and financing management.It should be use a way of financing combination in terms of financing.In the process of operation,increasing the efficiency of cash and improve the management of accounts receivable and payable account.In the process of investment,set up investment management center and avoid blind investment,to increase the effective use of cash.This paper hopes these management optimization proposals can improve the company's cash flow management and prepare the way to the development of the company.