Study On Cash Flow Management Of Iron And Steel Listing Corporation

With the domestic and foreign cash flow to the deepening of the study, we can find out the necessity and importance of cash flow management in the corporate governance process. The validity of the cash flow management, determines a company’s financing, investment and management status and it relates to the survival and development of enterprises. Cash flow management system is the enterprise of "hematopoietic system". If the enterprise’s cash flow management problems of enterprises will immediately fall into crisis. Any enterprise should establish and perfect the management mechanism of cash flow.Iron and steel industry is the basic of China’s industrial economy. After the rapid development, China’s steel output has ranked the first in the world for more than ten years, and the number of China’s iron and steel enterprises is very large. While in recent years, with the slowdown in the development of the national economy and the expansion of production capacity increased, the iron and steel enterprises are facing many problems of excess capacity, low value-added products, irrational industrial structure, weak competitive ability and the production cost and improve the effect of enterprise development etc. Lots of steel manufacturers face falling profit, losing money, or even bankrupt.Combined with the economic environment and the "cash is king" idea, iron and steel enterprises should pay more attention to the cash flow management. Because the iron and steel enterprises with capital intensive and long development cycle industry characteristics, safety degree of capital chain is not high, also will increase the risk of operation. It can be said that if an iron and steel enterprise is no net profit, the enterprise may continue to operate, but if no cash flow, the enterprise will immediately paralyzed.Bao Steel is the leader in China’s iron and steel industry, it has the most advanced production equipment and technology, whether in the domestic or international steel market has a very important position. This paper chooses Bao Steel as the main research object and analyzes its cash flow and points out that the management of cash flow problems and advantages.This paper will be divided into five chapters. The first chapter and the second chapter describes the related cash flow concepts and theories. The third chapter, based on financial statements of 27 steel listed companies in recent five years, the author analyzes cash flow management status of them. The fourth chapter, the author analyzes cash flow management status of Bao Steel. The fifth chapter will summarize the advantages and disadvantages of Bao Steel Corporation cash flow management on the basis of the above, to look forward to improve cash flow management level of iron and steel enterprises and the Z score model is introduced to improve the iron and steel enterprise cash flow risk early warning system.