Research On Cash Flow Risk Management Of Company A From The Perspective Of Value Chain

Under the severe impact of the global novel coronavirus epidemic,the fruit and vegetable industry is facing both opportunities and challenges,with increasingly fierce competition among enterprises and limited profit space.The fruit and vegetable service industry is in a critical period of transformation and upgrading,quality and efficiency improvement.In order to seek stable and sustainable development and gain economic benefits,enterprises need to invest a lot of money to improve product quality,deepen the supply chain and improve distribution capacity.In this process,it is likely to lead to cash flow fracture of enterprises and affect the long-term development of enterprises.Therefore,we must strengthen the control of enterprise cash flow risk.Therefore,we must strengthen the control of enterprise cash flow risk.Traditional cash flow risk management focuses on internal business activities and lacks close connection with the upstream and downstream of the value chain.However,comprehensive internal and external control of the enterprise’s current risk based on the perspective of the value chain can effectively solve the problems existing in the traditional mode of cash flow risk management.In this thesis,the leading enterprise A of fruit and vegetable service industry is selected as the research object,case analysis method and comparative analysis method are adopted to conduct an in-depth study on its cash flow risk management from the perspective of value chain according to the steps of risk identification,risk assessment and risk control.Firstly,the concepts and theories related to value chain and cash flow risk management are reviewed.Secondly,based on the perspective of value chain,the cash flow situation of Company A during the five years from 2017 to 2021 is analyzed to identify its possible cash flow risks and the reasons for the risks.Thirdly,based on the internal and external links of the value chain,relevant indicators are selected to build the cash flow risk evaluation index system,and the principal component analysis method and comprehensive scoring method are used to evaluate the company’s cash flow risk.On this basis,the main indicators affecting the company’s cash flow risk are compared with the industrial average to judge the company’s cash flow risk level.It is found that Company A has A large cash flow risk in recent years,which is mainly manifested in the following aspects:(1)Each link of internal value chain: Raw material procurement link has high cost and raw material backlog;Production link inventory capital occupation is more serious,cash flow liquidity is poor;Sales link cash ability is poor,affecting the enterprise cash flow inflow;Investment return period is longer,cash flow profitability is poor.(2)All links of the external value chain: the bargaining power of suppliers needs to be enhanced;The relaxation of credit policy for downstream customers makes the collection of accounts receivable slow,and there are cash flow liquidity risks and credit risks.The loan structure of the bank is not reasonable,and the risk of short-term debt repayment is high.Finally,the paper puts forward specific measures to solve the above risks: in each link of the internal value chain,make a reasonable procurement plan,strengthen the procurement budget management to reduce the procurement cost;Optimize production mode to reduce production cost,innovate inventory management to accelerate cash flow;Improve sales revenue capacity,expand sales channels to win cash flow;Diversify your investment risk by investing in businesses with different payback periods.In terms of external value chain,it is necessary to strengthen the value alliance between enterprises and upstream and downstream enterprises,optimize the management of inventory and accounts receivable,and maintain the cooperative relationship with banks to ensure the stability of financing funds.