Research On Daqing Drilling Engineering Company’s Financial Performance Evaluation Based On The Cash Flow

Daqing drilling engineering company was set up in Daqing oilfield systemas a specialized drilling engineering and technology services company, afterChinese Petroleum and natural gas corporation reorganization and integration ofDaqing, Jilin two oil field drilling forces in2008March. As Chinese petroleumfive petroleum engineering technology service companies, it also gets thecompetitive threat from the same industry at home and abroad enterprises,especially since the financial crisis, the Daqing drilling’s risk also increasesceaselessly. Daqing drilling engineering company needs to constantly improveitself and get development progress. In the situation of judging the developmentof enterprise, financial performance evaluation played a good guidance whichbecomes the important tool to make decision.Daqing drilling engineering company’s current system of financialperformance can not meet the request of enterprise development during thecourse of reforming and shifting the mechanism constantly. This paper analyzesthe basic situation of Daqing drilling engineering company from three aspects ofthe organizational structure, personnel and financial status. The paper finds thatthe company’s current financial performance evaluation system is lack of cashflow analysis after the Analysis for the existing problems and the reasons ofcurrent financial performance evaluation system of Daqing drilling engineeringcompany. On this basis, this paper analyzes the necessity of cash flow analysis inthe financial performance and the construct the financial performance evaluationsystem based on the cash flow of Daqing drilling engineering company. Thesystem is divided into four areas of assessment content, mainly benefits,operation, risk assessment and the development ability, at the same time theindexes involves in the examination content are divided into two levelsindicators and indicators. Finally, this paper puts forward correspondingsafeguard measures, in order to make the financial performance evaluationsystem have good use.