Research On Guangyuyuan Traditional Chinese Medicine Company Cash Flow Problem

At present,more enterprises attach importance to cash flow.Cash flow supports the company's production and operation activities and plays a fundamental role in promoting the development of enterprises.In order to enable enterprises to occupy a place in the fierce market competition,it is necessary to ensure a good turnover of cash flow.Therefore,it is very significant to study the cash flow of Listed Companies.For the Chinese medicine industry,the research of cash flow is more significant.From 2016 to 2017,China has successively launched a number of policies to promote the development of the pharmaceutical industry,coupled with population growth,disease spectrum progression and medical technology progress,income and profit of traditional Chinese medicine industry have risen sharply,and the future development prospects will continue to be good.However,under the background of the good development of the traditional Chinese medicine industry,some enterprises are facing the problem of cash flow shortage.This paper uses case study method,comparative analysis method and literature research method to study Guangyuyuan Company,which is a representative company in traditional Chinese medicine market.Based upon the data of Guangyuyuan's cash flow statement,combined with the balance sheet,profit statement and the annual reports,the paper uses various indicators to analyze the problems of Guangyuyuan's cash flow.According to the problems raised and the reasons for these problems,some suggestions are put forward.Specifically,this paper expounds the concept and theoretical basis of cash flow,then,this paper analyses the general structure of Guangyuyuan cash flow statement and specific activities,compares it with other enterprises in the Chinese medicine industry and finds cash flow problems,such as shortage of cash flow in business activities,excessive investment activities and unreasonable financing structure in Guangyuyuan cash flow management.Then,the causes of these problems are analyzed according to the actual operating conditions of enterprise,such as lack of cash flow awareness,unreasonable management of accounts receivable and inventory,a large number of related party transactions,lack of investment feasibility analysis and unreasonable planning of fund-raising activities.Also,aiming at the problems and reasons raised,from the aspects of business activities,investment activities,financing activities,this paper puts forward several countermeasures.It is concluded that Guangyuyuan is facing severe cash flow problems.In order to promote Guangyuyuan long-term development,it is necessary to deal with the problem of cash flow actively.Hope that through the study of the problems existing in Guangyuyuan cash flow,the experience and enlightenment will be provided for the whole traditional Chinese medicine industry,so that Chinese medicine industry will have a long-term vision,while increasing revenue and profits,cultivate the thinking of emphasizing cash flow,and constantly optimize the cash flow system.