Research On Improving The Efficiency Of Cash Management In M Company

With the rapid development of ecommerce,the scale of M company is growing rapidly,cash business is frequent,and cash balance is relatively large.At present,cash management of M company seldom considers the time value of capital and the opportunity cost of cash brought about by idle funds.The phenomenon of idle funds is serious.It has been difficult to meet the actual needs of the rapidly growing M company and adapt to the increasingly complex and fierce market environment.Under this background,based on the research of cash management efficiency at home and abroad,this paper takes M company as the research object,and introduces the current situation of cash management efficiency of M company from the aspects of cash holdings management and cash flow management.Through the longitudinal comparison of M company's cash flow fluctuation,cash turnover and other related indicators over the years and the horizontal comparison of the industry,it is found that M company has high cash holdings and low efficiency in the use of cash management.The main reasons are that M company has not accurately calculated the optimal cash holdings and has not effectively utilized idle funds.In view of these problems,from the characteristics of M company's cash flow income and expenditure and other characteristics of M company itself,the Miller-Orr model is used to calculate the optimal cash holdings of M company and to design adjustment schemes to improve the efficiency of cash management,which mainly include adjusting cash holdings at fixed time points,collecting and paying system,inventory management,reasonable arrangement of funds in investment financing links,and accelerating cash week.Speed,improve M company cash management efficiency,so as to concentrate more funds for business development needs,in order to obtain greater financial returns.