| The importance of cash flow to enterprises is obvious.In today’s rapidly changing market,it will be able to determine whether a enterprise can survive in this environment.The essence of capital determines that creating value is the real goal of cash flow management.Furthermore,value maximization in financial management is considered to be the long-term goal pursued by all enterprises.To achieve this goal,first of all,enterprises must be able to create their own value,but the enterprise creates the value to need to carry on the optimized management to its cash flow.The cash flow can provide the unceasing strength for the enterprise’s value creation.At present,the research on cash flow management pays more attention to the balanced management,and the research combining with the goal of creating value is not perfect.Therefore,this paper studies how to manage the cash flow to realize the value increment of the enterprise,and finally realize the maximization of the enterprise value.With the fierce competition in various industries,household electrical appliance manufacturing is one of the representative industries in many industries in China.At present,the changes in the industry urge enterprises to combine cash flow management with the goal of creating value.Based on the above background,this paper takes MD Group’s cash flow management as the research object.Through combing the relevant literature at home and abroad,and uses the case study method to quantitatively explore MD Group’s cash flow management from the perspective of value creation.First,it gives a brief introduction to MD Group’s basic situation.Second,to introduce the current situation of MD Group’s cash flow direction,flow program,flow speed and flow quantity in detail.Third,to compare MD Group’s cash flow with related enterprises by using the method of comparative study to find out its shortcomings.MD group cash flow management is evaluated from three aspects: safety,sustainability and value creation.It is found that the cash flow management of MD Group has some problems,such as the decrease of cash turnover rate,the large fluctuation of cash flow from operating activities,and the unreasonable capital structure of the group.According to the problems existing in MD Group’s cash flow management,the paper puts forward the following four suggestions: First,some related financial instruments should be introduced into the group’s current cash flow management system,which enriches the way of cash flow management.Second,optimize procurement management,build inventory management platform,improve sales methods and accounts receivable policy,improve the use efficiency of cash flow.Third,reasonably control the expansion rate,increase r＆d investment,improve cash return ability;The fourth is to establish a cash flow risk warning mechanism with value creation as the goal,and conduct comprehensive monitoring of cash flow.It is hoped to provide reference for other enterprises of household appliance manufacturing to manage their cash flow. |
