A Case Study Of JL Company On Cash Flow Management Of Medium-sized And Small FMCG Enterprises

Cash is the most liquid assets. The position of cash flow plays a crucial role in the survival and development of enterprises, because the operating of cash flow largely reflects the company’s internal development capacity. Cash flow for the enterprise, just as human blood, will not make enterprises grow up healthily if we don’t have a good cash flow position. The reason why many companies are in trouble is due to a shortage of cash, and so they cannot achieve the target, even may not lead to the normal operation of the enterprise. And then they may not be able to pay its debts as they fall due, and eventually they have to settle for even bankruptcy."Cash is king" has become the consensus of all enterprises and whether an enterprise cash flow management is reasonable is directly related to the survival of the enterprise. The purpose of the cash flow management is to reduce the amount of cash holdings so as to maximize cash savings so that the idle cash for investments can be translated into corporate earnings. In other words, companies should seek a balance between reducing risk and increasing income so that they can have the best cash flow. Due to the coexistence of the characteristics of medium income, high risk of fast moving consumer goods in small, medium-sized enterprises, the demand on cash is higher. Once there are some problems in the cash flow, there will be a serious problem.Firstly, this thesis gives us a general introduction on cash flow, some related concepts about management and their theoretical bases in medium-sized and small FMCG enterprises. And then, based on a combination of theory and practice, this thesis makes a in-depth analysis of the cash flow management status in the JL company, and puts forward some cash flow management problems in JL company, such as unstable cash flow, weak ability to raise funds, cash endogenous capability is not strong, cannot be meet to the development needs of the company, the cash flow management system is backward and so on. And then, according to the specific problems in JL Company, from two aspects of strategy and tactics, I design a set of cash flow management model. Strategically we should adopt the radical-management mode, companies must first audit the management issues reflected in the cash flow problem, change the concept of cash flow management, enhance corporate strategic process management, thus to improve the operational and financial management of the enterprise, improve cash flow from the essence problems. Tactically, aimed at the core content involving in the JL company’s cash flow management, including the redesign of the cash flow budget management system in JL corporate, the methods of the best cash holdings, the reengineering and the flow management of the cash flow management process. This part of contents is also the main innovation points in this thesis.