The Study On Cash Flow Management Optimization Of A Construction Enterprises Based On Value Chain

The spread of COVID-19 in early 2020 caught many construction companies off guard.Construction enterprises not only need to face the following management problems such as project resumption,epidemic prevention on the construction site,project progress delay,project payment claim,but also face the cash flow interruption,payable payment difficulties,difficult recovery of the cushion capital project funds and other complex business difficulties.Construction enterprises are closely related to their industrial policies in the upstream and downstream of the supply chain.Only focusing on their own cash flow management mode,they cannot timely respond to changes in business policies and strategies of stakeholders.Against this background,more and more construction enterprises profoundly aware of the importance of the value chain management and cash flow management,and expanded their management horizons from the inside to the outside of the enterprise,entities in the hope of enterprise internal resources and external industry chain through effective combination,to further control the rate of flow of enterprise cash flow,keep cash flow stable and balance,continue to improve the rapid growth of revenue,and maximize the value of the enterprise.It is very crucial for the survival and development of construction enterprises to analyze and study cash flow management from the perspective of value chain.The study can further enhance management’s understanding of the internal financial situation of the enterprise,and epitaxy expand the research perspective of the enterprise cash flow management from internal to external,strengthen the enterprise’s ability to deal with financial risk,promote the development of composite of enterprise value and cash.And beyond that,this study has some theoretical value,it is based on the real construction enterprise background to carry out research,and can supplement and improve the relevant research on the cash flow tube of construction enterprises to a certain extent.The research conclusion of cash flow management countermeasures and safeguard measures based on value chain can provide reference for cash flow management of other construction enterprises facing similar cash flow management situations in the region.Based on the background of post-epidemic era,from the perspective of value chain research,combined with literature review,sort out the theoretical basis of cash flow management at home and abroad,focusing on four management objectives of cash flow:process sustainability,flow efficiency,flow maximization and circulation security.A corresponding evaluation index framework based on value chain is constructed around the aforementioned cash flow management objectives.Based on the actual situation of cash flow management of A construction enterprise,this paper adopts the interview method and comparative analysis of financial indicators to conduct A construction enterprise longitudinal comparison of its cash flow fluctuation and structure from 2016 to 2020;In addition,through the horizontal comparison with the cash flow management evaluation indicators of selected benchmark construction firms,the paper focuses on the problems and causes of the cash flow management of A construction enterprise to carry out research.From two dimensions of external and internal value chain,it studies the countermeasures and safeguards to optimize the cash flow management of A construction enterprise.