Research On Greentown Group Financial Risk Based On Cash Flow

The cash flow of firms, attract more and more attention of management in the modern enterprise management, it is not only the assurance of debt, but also the important index to measure profitability,anti-risk capability, and growth potential in the future. The research in financial risk cannot be limited in analyzing income statement and balance sheet. balance sheet uses the book value method to be the measurement model, the book value method is the reaction of costs in the past, which leads to the contradiction between confirmation and measurement of assets the existence of assets in contradiction with the previous, the book value of the assets cannot reflect the real market value.In income statement, account the items according to the principles of cost and income matching, increasing the manipulation probability. Therefore,from the cash flow perspective, the article will do the risk research of Greentown Group, a real estate companies, combing balance sheet and income statement data.By reading the relevant literatures in cash flow, cash flow management, financial risk and financial risk management, the article identify the financial indicators related with management and control measure of cash flow in Greentown Group. The article also analyzes the financial statements, based on data of financial statements of GreentownGroup from 2008 to 2013. Furthermore, from the net cash flow, operating cash flow ratio, cash flow debt ratio, cash re-investment ratio and operating cash income ratio in operating activities, investing activities and financing activities the article measures financial risk of Greentown Group. Finally, according to the finical situation of Greentown Group, the article put forward some strategies for Greentown Group, such as long-term management strategies, improving the operation efficiency of funds and increases the operating cash flow, controlling cash flow in financing activities. In conclusion, the article plans to provide intellectual support for changing the long-term business strategy, improving capital efficiency, increasing operating cash inflows, controlling cash flow from financing activities in Greentown Group.