| The ultimate goal of the company’s daily efficient management is to create value for the company and achieve sustainable development of the company.In the whole process of daily operation,the management pays more attention to the relevant indicators in the profit statement,while ignoring the cash flow in the process of company operation,investment and financing.This behavior will lead to the emergence and outbreak of cash flow risk,and then increase the company’s financial risk.Similarly,it will lead to the failure to achieve the ultimate goal of value creation,but may lead to the breakdown of the company’s capital chain,bankruptcy and other crises.Cash flow is the blood needed in the daily operation of a company and the carrier of value creation.It flows through every aspect of the company’s daily operation and has a significant impact.Cash flow risk management in the traditional mode does not take into account the external aspects of capital transactions,but only controls risks from the internal operation of the company.The application of the value chain theory makes the company’s internal and external interrelated production and operation activities constitute a dynamic process of value creation.The cash flow risk management model from the perspective of value chain helps the company to control the cash flow risk reasonably and ensure the normal flow of funds from the internal and external aspects.At the same time,it can maintain stable cash flow on the premise of capital security,help the company to develop efficiently and sustainably for a long time,and create value.In this paper,we choose JH Automobile,a state-owned enterprise in the automobile manufacturing industry,as a case study.According to the key links related to cash flow in its value chain and the analysis of relevant financial indicators,we make a preliminary identification of cash flow risks in each link.Through the analysis,it is found that JH Automobile has the following problems: excessive purchase of raw materials in the procurement process,which is easy to cause inventory backlog;low capacity utilization rate in the production process,which can not form economies of scale;weak ability to transform cash flow value,poor ability to recover cash in the sales process,which can not achieve efficient capital turnover;scattered customer groups in the customer process,lack of stable large capital inflow;The risk of debt repayment in the process of financing is high,and the way of financing is single.Then establish the appropriate cash flow risk assessment system based on the safety and value creation objectives,and further quantify the cash flow risk.It is found that the cash flow risk of JH Automobile in terms of debt repayment,profitability and growth is high,which will affect the normal production and operation of the company.In view of the above problems existing in the cash flow risk management of JH Automobile,the corresponding cash flow risk coping strategies are given based on the safety and value-creating objectives of cash flow risk management from the perspective of value chain.These risk response measures include changing sourcing strategy,building the best purchasing portfolio,improving capacity utilization,timely introducing JIT method,improving supply chain financial services,optimizing the company’s capital structure,defining development strategies,and improving cash collection ability.At the same time,we hope provide some reference for other enterprises in the automobile manufacturing industry in cash flow risk management. |
