The Study On Hefei Chengjian Cash Flow Management

In 2015, government put forward the Supply-side reform. One of the five tasks "De-stocking" made the real estate market heat up again. However, many real estate companies is in the low level of recognizing the importance of cash flow management, which increasing the risk of cash flow.By summarizing the domestic theory and foreign knowledge related to cash flow management, this paper takes Hefei Chengjian for example and analyses the current cash flow status through four key elements of flow, process, the flow velocity and the volume of flow. The aim is to point out the underlying problems in the company and propose a series of recommendations to improve the company’s cash flow management in depth.Based on the the integrated use of literature research, comparative analysis and case study, this paper analyses cash flow situation further to find problems in Hefei Chengjian cash flow management. They are no cash flow management organization system; unsound cash flow risk management system; loosed cash flow budget management mechanism; the neglect of the management of operating cash flow and insufficient efforts to control stock rotation. Then the paper aims to propose targeted suggestions for the improvement of Hefei Chengjian cash flow management. They are establishing decision-making center optimization; improving cash flow risk management system; enhancing the management of operating cash flow and shortening the inventory turnover to achieve stable cash flow cycle. Of these, it suggests to build a early-warning index system of cash flow risk, establish "risk control" as the core of hedging plan, and prepare the rolling cash flow budget to improve cash flow risk management system. Among them, the innovation of this paper lies in:(1) A set of theoretical system of cash flow is formed which conbines qualitative and quantitative analysis. Specifically, those are the cash flow analysis in the combination of corporate strategy; cash flow process analysis combined with enterprise business processes; the cash flow volume in trend analysis and ratio analysis method, the flow velocity analysis is a combination of working capital and other relevant indicators.(2) The introduction of a "risk control" as the core of the hedging program to avoid risks for the real estate enterprises, which has important reference value especially for small and medium sized regional real estate enterprises.Hefei Chengjian cash flow management reflects the common problems in regional real estate. The author hopes the suggestions summed up in this paper could provide some reference for people working on cash flow management.