The Research Of Cash Paying Capacity Based On Long

Reasonable and stable level of cash paying capacity is the key to an enterprisesurvival,which can ensure the short-term liquidity and short-term cash payingcapacity.However when the number of the cash paying capacity reduce to benegative,or continue to be negative,the enterprise would be faced with liquidityrisk raise,even lead to the result of capital chain rupture. After the era of economiccrisis, the economic situation is still grim,practitionesand theorists all concern abouthow to ensure liquidity while making a forward-looking decision.The previous research on the cash paying capacity, from the short-termperspective,the cash paying capacity is the index to measure liquidity and short-termdebt paying ability. In another way from the long-term financial policyperspective,cash paying capacity be less used as on index of measuring the infulenceof financial decisions. In this paper, cash paying capacity as a starting point, choosea long-term decisions research perspective, and pay attention to long-term factorsaffect the enterprise financial policy on the ability to pay cash, which meaning toenrich the cash paying capacity research. The analytical framework establishedanalysis framework can actually applied to the enterprise, which is the practicalvalue of this paper.This paper mainly adopts the normative analysis and case study method, andtrend analysis, comparative analysis, ratio analysis. Cash paying capacity isdetermined by long-term investment and financing activities and business activities,changes will eventually the financial ability to pay cash index changes. The index ofcash paying capacity not only reflect the capital movements but also observe theeffect of financial decisions. Based on this, raise up a cash paying capacity researchframework from decision perspective.First, analyze the payment term decision from the perspective of the cash basedon competence elements and its long-term effects; then, the elements of long-termcapital, long-term investment and working capital needs three aspects of long termcapital allocation coordination through discussing the ability to pay cash, the cashpayment ability model is divided into four main categories:"long term capitaldependence mode, commercial credit dependent mode, cooperation mode, the shortage of funds mode", combined with the specific case analysis, the applicableconditions and key points of the mode of risk.Research show, for the static, cash paying capacity is affected by long-termdecision-making factors which is relatively stable, the enterprise should take care ofthe risk factors affecting the long-term key points, to avoid the liquilty risk; for thedynamic, if conditions change, the cash paying capacity mode change.