The Research On Cash Flow Management Of Z Company

In recent years,our country has implemented some big development strategies,“Belt and Road”、the central rise strategy and the western development strategy,China’s large and medium-sized state-owned construction enterprises have ushered in new opportunities for development.As the leading enterprise of construction enterprises,Z company undoubtedly has a greater advantage in the promotion of national policies.In addition,the establishment of Hebei Xiongan New District on April 1,2017 provided new additions to Z’s infrastructure projects,under the background of economic globalization,the environment of construction enterprises has changed greatly,and they are faced with increasingly fierce market competition pressure.Capital is the basis and premise for the survival and sustainable development of enterprises.Only by ensuring the sound operation of capital chain,can the healthy development of enterprises be promoted.Companies hold cash to meet transactional needs,preventive needs,and speculative needs.An adequate amount of cash stock is the basic guarantee for the normal operation of the company,but too much cash stock will cause waste of resources and increase operating costs.On the other hand,the traditional profit-centered financial management model is increasingly unable to provide comprehensive information to enterprises.The cash flow centered financial management model can better reflect the relationship between business activities and profits.It can effectively eliminate the limitation of traditional profit index and provide detailed and objective accounting information for management and investors.Although state-owned enterprises have greater capital strength than small enterprises,state-owned enterprises also face the risk of capital disruption.This article takes the case of the state-owned construction company Z as a case,based on the theory of free cash flow and the best cash holding theory.I elaborated the current situation and existing problems of the cash flow management of Z company by questionnaire method and interview method,,then I deeply excavate the problems existing in the cash flow management of Z company through the analysis of the cash flow structure of Z company and the analysis of indicators,the problems include single financing structure,weak debt paying ability,insufficient capital operation ability.I try to calculate the best cash holding amount of Z company and give the best cash holding range for Z company.Finally,the paper puts forward optimization countermeasures from the aspects of improving managers’ awareness,perfecting internal control mechanism,reducing accounts receivable,implementing the best cash holding management method and optimizing the financing structure,so as to promote the good operation of the company’s cash flow.