Research On Pinduoduo Cash Flow Management Based On Value Creation

Cash flow runs through the company’s entire production process,and good cash flow is an important guarantee for the company’s business development.The purpose of enterprise production and operation is to maximize enterprise value.As an important part of financial management,enterprise cash flow management is also to create value.The introduction of value creation in cash flow management can lead to a more in-depth guide to promote the sustainable development of the company.At the same time,Internet e-commerce companies are booming,and Pinduoduo has developed rapidly under the suppression of existing business giants and successfully listed in the United States.Based on this,this paper explores Pinduoduo’s cash flow management from the perspective of value creation,which has certain research significance.This paper selects Pinduoduo,a new Internet e-commerce enterprise,as the research object,adopts literature research method and case analysis method,and briefly introduces Pinduoduo company,including its business model,value drivers and cash flow status;then,explores Pinduoduo’s cash flow The value creation path of flow management is explored from the cost side and the income side;finally,the cash flow management is evaluated from the three activities of operation,investment and financing.The analysis framework is to evaluate operating activities based on the quality of cash flow generation of existing assets;to evaluate investment activities based on the quality of cash flow generation of future assets;to evaluate financing activities with the cost of capital as the discount rate;to evaluate the growth and volatility of cash flow.as a measure of cash flow continuity.Through the in-depth analysis of Pinduoduo’s cash flow,with the background of value creation,we find out the deficiencies in cash flow management,summarize the existing problems,and put forward suggestions for improvement from the perspective of value creation.Through research,we finally came to the conclusion that,first,in business activities,we must strengthen core competitive advantages,enrich product categories,broaden income channels,and improve payment channels;second,in investment activities,we must balance the investment structure,and choose more options with return on investment.products,and strengthen the pre-assessment of investment in new projects.Third,the financing activities should comprehensively evaluate the financing plan,and optimize the financing structure through the selection of various financing channels.Fourth,to stabilize cash inflows and outflows.I hope to provide some concrete and feasible suggestions for Pinduoduo’s cash flow management and improving the company’s value creation ability,and I hope to provide some reference for the same type of asset-light e-commerce enterprises.