Analysis Of Working Capital Management Based On Cash Flow

Working capital is related with the enterprise daily business activities closeIy,it can extend to almost all aspects of the enterprise daily business activities.We must put the management of working capital in the most important position of enterprise management.Cash flow management is particularly important link of working capital,also the most intuitive flow of funds,the enterprise has a unique status and role in the production and business operation.The enterprise vitality characteristics in the control of the cash flow,the accounting information users to evaluate enterprise debt paying ability,clear profit ability,analyze ability to pay dividends.,cash flow net value and price changes affect the relationship between the information is based on cash flow.Therefore,there is no substitute for the analysis of working capital in cash flow.By study study working capital management can develop industry characteristics,but to the specific industry,especially in agriculture industry or to the company within a specific management of working capital and lack of professional and specific research system,agriculture as the foundation industry of China has unique characteristics,utilization and turnover of working capital is also different from other industries,agriculture industry capital takes at least a crop growth cycle,no doubt that working capital management faced a huge problem.Based on the theory of operating capacity,profitability management theory,financial risks theory,and the theory of cash flow and other relevant theoretical study,combined with knowledge such as economics,finance,management,in the point of cash flow take a research about how to efficient working capital management.We select the typical enterprise DBN’s group as a sample unit,using literature research,case analysis,quantitative analysis,descriptive statistics and other methods,on the basis of the classification method of supply chain,the working capital is divided into operating activities and the management of working capital,and business activities related working capital from the aspects of purchasing,production,marketing.This article especially emphasizes the influence of each link working capital activities of DBN’s group so as to confinn and perfect the institute of literature form the point of view.Finally,the author from the allocation structure,purchasing and inventory management,production operation management,marketing strategy,and cash flow,demonstrates the DBN’s group existed problems in the management of working capital,and combined with the existing economic environment,the optimized plan for the proposed DBN’s group of working capital management and working capital management in the same agricultural listed companies for the optimization of the train of thought.