Research On Cash Flow Management Of WH Precision Machinery Manufacturing Company

Cash is like the blood of an enterprise.Without the support of cash,an enterprise cannot achieve daily operations and investment development.Only through good cash flow management and achieving the goal of corporate cash flow management can it ensure timely funding.Therefore,cash flow management is very important to every company and should not be underestimated.In daily management,many companies are over-focused on profit,neglecting the management of cash flow,leading to the break of the capital chain and bankruptcy.Only to ensure the quality of cash flow,In order to make the company sustainable and healthy development.WH Company is a high-tech enterprise manufacturing precision machinery.It has great uncertainty in the development process,and its cash flow fluctuates greatly.The current cash holdings are not enough to repay the due borrowings,and the payment ability is poor.As a result,it affects the normal operation and production activities of enterprises,and it is urgent to find loopholes in cash flow management and optimize them to restore the healthy state of cash flow to ensure the smooth progress of business activities.In this context,this paper studies the cash flow management of WH company and proposes an optimization method.This thesis first conducts an overall analysis of the cash flow status of WH company to understand the current status of the company’s cash flow,and finds that there are problems with the cash flow structure of the company.The cash inflows and outflows of operating activities,investment activities and financing activities do not match,and the cash flow is exactly The results of its management indicate that WH has defects in cash flow management.In order to find out the problems in cash flow management more comprehensively,this thesis focuses on cash flow management,budget management,revenue and expenditure and floating volume management.And the overall analysis of quality,which uses the DSO theory and selects indicators such as cash flow ratio,capital purchase ratio and other indicators for analysis,and then uses entropy method to take safety,sustainability,and value creation as the cash flow management goals The basic construction of the indicator system is to objectively analyze the company’s cash flow management effect,calculate the weight and comprehensive value,and make the analysis of cash flow management more intuitive and comparable.Through this quantitative analysis,it is found that the cash flow management effect of WH company is present.The downward trend,even though the well-managed 2016 still has a large gap compared with the industry average,at the same time,with the help of the weight obtained from this analysis,we can also find the factors that have a greater impact on WH’s cash flow management.After comprehensive analysis,find out the problems in WH’s cash flow management,and analyze the problems,and propose corresponding countermeasures accordingly,such as establishing a full-process management mechanism for accounts receivable,measuring the company’s best cash holdings,and enhancing cash flow management In order to optimize WH’s cash flow management level.