Research On JD's Cash Flow Management Based On Value Creation

The goal of financial management of modern enterprises is to maximize enterprise value,and all management activities should be oriented to maximize enterprise value.As one of the objects of financial management,cash flow management should also aim at creating value.However,the traditional cash flow management research mainly focuses on the security and liquidity of cash flow,and the research on the combination of cash flow management and value creation goal is not deep enough.How to achieve value creation through cash flow management has attracted much attention.Based on this background,this paper studies the cash flow management of JD from the perspective of value creation and explores how enterprises should manage cash flow to realize value added,which has certain theoretical and practical significance.In this paper,the basic situation of JD group is briefly introduced,including its business model,the performance of stock price and market value,and the status quo of cash flow management.It is found that its free cash flow is not good enough.Then from the three aspects of business activities,investment activities and financing activities to analyze how JD through business operations and strategic arrangements for value creation,and then through the cash flow situation to evaluate the performance of the three aspects.Therefore,two objectives and evaluation indexes of cash flow management based on value creation are determined,that is,the value creation goal and the stability goal.The relationship between them is analyzed,and the value creation goal and stability goal of cash flow management are determined to serve value creation.Then,by using the established evaluation index system,this paper analyzes the value-creating goal of JD's cash flow from the aspects of cash flow and velocity performance of operating activities,investment expenditure management and weighted average capital cost management,and evaluates the stability goal with the cash flow volatility.In this way,problems existing in these aspects of JD are found,and Suggestions for improvement are put forward accordingly.Finally,a conclusion is drawn.It is hoped that this study can provide some reference for other enterprises in the industry.