Research On Financial Risks Based On Cash Flow Perspective

With the unclear situation of the economic recovery in Europe and the United States,the global economy is still in a state of depression.The current international economic situation has seriously affected the development of enterprises' production and operation.Many enterprises are sufferincg unpieecedented challenges.Many enterprises are facing cash flow problems,operating difficulties,and in deep financial risk.The enterprise as a national economic cell,is the foundation of a country's economy,enterprises also help the development of society.The stand or fall of enterprise operating performance directly affects the developmental level of national economy,the living standard of the people,and also directly affects the industrial safety,the country's stability and prosperity.Therefore,under the background of the global economic recession and the financial crisis,it's of great practical significance to carry on the enterprise-centric research on the various risks which the enterprises are facing.In various risks the enterprise are facing,financial risk obviously occupies an important position,and draw much attention by enterprise' stakeholders.Based on this,whether it is business,government,investors,or workers and are concerned about the financial risks.The traditional index system is very easy to be manipulated and it mainly reflects the accounting information.Traditional financial indicators cannot reflect the cash flow capacity of enterprises,and also have the shortcomings of lacking of forward-looking,poor presentence effect and contrast effect.At the same time,cash flow index can reflect a company' ability to repay long-term and short-term debt more reliably,it also let the corporate management and investors from all walks of life truly understand the company's strength to create gains,company's profitability,and help to predict investment risk,better contrast all kinds of corporate financial information.Therefore,taking the cash flow as the angle of view to discuss the financial risk has the realistic significance.Company ZLY as an important backbone company of the country,it's loss expanded year by year in the past five years,asset-liability ratio and cash flow indicators deteriorated year by year.Insufficient cash flow has brought huge financial risk to company ZLY.So this paper is based on the cash flow perspective to do the research on the financial risk of company ZLY.