Research On Cash Flow Risk Management Based On Value Creation Of Midea

The goal of an enterprise is to maximize value and create value in production and operation.Cash flow is not only the blood of production activities,but also the comprehensive embodiment of business results and the source of value creation.If an enterprise has healthy cash flow,its value-added activities will be guaranteed,and the enterprise will continue to create value;if there are hidden dangers and risks in its cash flow,the value-added activities of the enterprise will be affected,and the development of the enterprise will be fettered,thus affecting the realization of the goal of maximizing the value of the enterprise,resulting in the loss of the value of the enterprise.Therefore,the reasonable and effective management of cash flow risk plays an important role in the smooth progress of enterprise value creation activities.As a representative of the manufacturing industry,household electrical appliances enterprises,facing the increasingly competitive market environment,if they only rely on the traditional cash flow risk management,they will not be able to prevent the cash flow risk well,not to protect the value creation activities of enterprises.Therefore,from the perspective of value creation,this paper selects Midea Group as the case study object,and uses case analysis method to analyze,evaluate and control the cash flow risk of Midea Group.Firstly,this paper expounds the research background,research significance,research framework,research methods and research contents,and combs the domestic and foreign literature;secondly,it summarizes the related theories of cash flow risk management and value creation,and expounds the relationship between cash flow risk,value creation and cash flow risk management and value creation from the theoretical perspective Section of the theoretical analysis laid the theoretical foundation and provided the theoretical basis;thirdly,through the detailed analysis of the risk of the group's cash flow direction,cash flow process,cash flow velocity and cash flow risk,the paper evaluates the group's cash flow risk from two aspects of safety and value creation,and summarizes the cash flow wind in the value creation of the case company Finally,according to the inducement of Midea Group's cash flow risk in the process of value creation,this paper puts forward the management measures of cash flow risk,hoping to provide reference for the cash flow risk management of similar household electrical appliances manufacturing enterprises in China.