Research On The Cash Flow Management Of The C Solar Energy Company

As an important part of the enterprise manufacturing management activity, the financial managementplays a significant role in the operation and development of the enterprises. With the development of thetheory and practice of the financial management, its target have been changed from the asset scale andproduction maximization, profit maximization to the enterprise value maximization. Correspondingly, thefinancial management objective has also been shifted from the asset management, the cost management tothe cash flow management.The cash flow shows its unique advantage when it’s compared with the profit. It’s the real wealth theenterprise masters in hand and can reflect the assets liquidity, solvency and the potential developmentability as well as the financial management level. The shortage or poor circulation of the cash flow maylead to the business failure, but the sufficient cash flow can provide strong financial support for theenterprise’s reproduction, as well as the realization of the enterprise value maximization. The cash flow hasfatal significance to the enterprise’s survival and development. As a result, that enterprise must pay enoughattention to the cash flow and strengthen the cash flow management.The economic globalization, the financial crisis and the fierce market competition face the enterpriseswith more complex and changeable environment. Facing with the challenge, in order to reach the target ofthe enterprise value maximization, the enterprise must establish the management concept that “Cash isKing”, make full use of the cashflow management methods and means, strengthen the cashflowmanagement ability and improve the enterprise’s cash-earn ability.The cashflow management theory has formed a comparatively perfect theory system since it was proposed, but in practice, many companies in our country ignore the importance of the cash flow and stilltake the profit as the financial management orientation, failing to take the cash flow management into themanagement system. Ignoring the cash flow management and lacking of management methods leads tomany problems such as the capital shortage and lacking liquidity and many companies would be stuck instagnation if the capital chain is broken.Based on the background that the companies in our country generally lack the cash flow management,this article studies the cash flow management by taking the C solar energy company as an example. Guidedwith the goal of the enterprise value maximization, the article studies the statement of the cash flowmanagement of the C solar energy company, by using the cashflow evaluation index, analyzing the cashflow statement and other financial data. By introducing the macro environment after the financial crisis andindustry environment, this article finds out the problems in the company’s management, analysis the causesand finally give effective suggestions for the company’s cash flow improvement, so that the company canstrengthen its risk-preventing ability, cash-creating ability and finally enhance its own competition.Through the case study this article wishes it can provide some references on the cash flow management forother enterprises in the industry.