Study On The Financial Risk Of Enterprises Based On Cash Flow

In this era, enterprises are in a complicated and diversified environment. Many factors such as macro economic fluctuation, market competitiveness and information asymmetry, make enterprises face many uncertainties in the management process. So risk management becomes an important task in modern business management. Financial risk which is a kind of microcosmic economic risk concentrates and manifests management risk. Therefore, it is significant to study on financial risk.As a kind of rare resources, cash will influent enterprises' existence and development. Cash flow condition may reflect enterprises' financial risk and the cash flow management is a critical task for controlling enterprises' financial risk. The study is based on the foreign and domestic research's achievements, but pays more attention to the reality and risk management demands of enterprises in our country.This thesis is about enterprises how to conduct financial risk management in view of cash flow. It defers to a logic structure of financial risk discernment, estimation and control. This thesis analyzes the relation between cash flow and financial risk which is based on financial risk management assumption, "financial risk" and "cash flow" definitions. Then it demonstrates that cash flow information is effective at financial risk discernment, by studying 28 public companies in Shenzhen stock exchange market. Basing on this finding, this thesis probes two methods, cash flow statement structure analysis and cash flow indexes analysis, to discern enterprises' financial risk. In the part of financial risk estimation, a new model, synthesis grading method which is based on cash flow indexes, has been built to estimate financial risk. And furthermore, it makes an analysis about Sichuan Shuijingfan Limited Liability Company by application of the synthesis grading method. The last part of this thesis points out some principles and methods of cash flow management under the purpose of controlling enterprises' financial risk. The theories which are probed by this thesis can attribute to improve enterprises' financial risk management.