Cash Flow Management Optimization Of KD Company

The world economic situation is not optimistic,business operators pay more attention to the cash flow.In a sense,the ability of enterprises to obtain cash is more important than the ability to obtain profits.If an enterprise can't achieve long-term profits,then the business will eventually collapse,but if an enterprise can't get proper cash flow to repay debts in a certain period of time,the enterprise will immediately face the threat of bankruptcy.So,it is particularly necessary to pay attention to the cash flow of enterprises,and explore how to carry out cash flow management scientifically and systematically.Now,Building materials machinery manufacturing industry is in a stage of overcapacity,and revenue growth has slowed.In response to industry bottlenecks,KD company has formed a new business pattern which includes three main lines:Building materials machinery manufacturing,Environmentally friendly building materials and Clean gasification equipment.On the one hand,the company actively responds to the "The Belt and Road" policy to open up overseas market;On the other hand,the company increases R & D investment in new areas of business;In addition,the company has also carried out several large-scale mergers and acquisitions to expand market share in recent years.In this process,the company's capital investment is quite large,but the cash flow management situation is not ideal.There are some problems such as the unreasonable cash flow structure,the lack of matching funds,low efficiency of cash turnover and etc.In order to provide a reasonable guarantee for the continuous operation of the company and avoid the crisis of the capital chain rupture,it is particularly necessary to explore how to improve the management and ensure the flexible turnover of cash flow.At first,this paper describes the background and meaning of the cash flow management,and reviews the domestic and foreign research on cash flow management.According to these related theories,this paper makes a summary on how to conduct scientific cash flow management.On this basis,this paper selects KD manufacturing company,which is in a stage of rapid development,as the research object and analyzes the current situation of its cash flow management from three aspects.Finally,this paper also puts forward some improvement proposals for KD company,such as improving the company's cash flow management system,perfecting the relevant organization system of KD company and improving the awareness ofrelated staffs.These would provide a useful reference for other companies in the same industry.