Research on the Importance of Enterprise Cash Flow Management
DOI:
https://doi.org/10.62177/apemr.v1i6.82Keywords:
Enterprise Cash Flow Management, Financial Stability, Risk Management, Cash Flow Forecasting, Optimization StrategyAbstract
The management of cash flow in the Enterprise is a critical component of enterprise financial management, which plays a very important role in the survival, development, and financial stability of enterprises. This paper systematically reviewed the theoretical basis and research status of cash flow management based on existing literature, analyzed the important role cash flow plays in enterprise operation, investment, and financing activities, and indicated that while cash flow affects the profitability of enterprises, it is also directly related to the debt-settling ability and the risk control level of enterprises. Thus, in sorting out the main problems and challenges faced by enterprises in cash flow management, a series of optimization strategies are proposed in this paper: to strengthen cash flow forecast and planning management, to balance operating and investment cash flow reasonably, and to improve the ability of enterprises to cope with external risks. Finally, this thesis makes an overall summary of the importance of enterprise cash flow management and puts forward further suggestions on future research.
Downloads
References
Okoroyibo, E. E.: Imperatives of Cash Flow Management as a Tool for Business Success: An Empirical Survey of Selected Firms in Delta State Nigeria. Journal of Policy and Development Studies 10, 1-7(2016).
Dewdney, K.: Cashflow and Export. Industrial Management and Data Systems 83, 22-24(1983).
Rujoub, M. A., Cook, D. M., Hay, L.: Using Cash Flow Ratios to Predict Business Failures. Journal of Managerial Issues 7, 75(1995).
Dvořáková, L., Kronych, J., Malá, A.: Cash Flow Management as a Tool for Corporate Processes Optimization. Smart Science 6, 330-336(2018).
Persson, I.: Analysis of capital investment: A conceptual cash flow model. Engineering Costs and Production Economics 20, 277-284(1990).
Mykytiuk, O., Onysenko, T.: Creative Intelligence in the Management System of Cash Flows of the Enterprise. Theoretical And Applied Issues Of Economics, 2019.
Morar, A.: The Importance Of Cash Flow In Underlining Companies Financial Position. Annals - Economy Series, 6, pp. 216-220 (2015).
Atakul, N.: Exploring the cash flow management strategies of Turkish construction companies. Journal of Construction Engineering, Management & Innovation (2022).
Bodenhorn, D.: A Cash‐Flow Concept of Profit. Journal of Finance 19, 16-31(1964).
Thompson, R.: Understanding Cash Flow: A System Dynamics Analysis. Journal of Small Business Management 24, 23(1986).
Gentry, J., Newbold, P., Whitford, D.: Profiles of Cash Flow Components. Financial Analysts Journal 46, 41-48(1990).
Sharafeddine, R.I.: A Cash-Flow Theory of Stock Valuation. International Journal of Finance and Accounting 4, 79-107(2015).
Salvo, F., Chiodi, M., Patricola, P.: Functional data analysis for optimizing strategies of cash flow management. International Federation of Classification Societies 2015, 219-230.
Drebit, G., Čekerevac, Z.: Theoretical Approaches to Understanding the Nature of the Cash Flows of Companies. MEST Journal 5, 22-31(2017).
Cui, Q., Hastak, M., & Halpin, D.: Systems analysis of project cash flow management strategies. Construction Management and Economics, 28, pp. 361-376 (2010).
Caruntu, C., Lapadusi, M.L.: Profitability and Financial Stability. Annals - Economy Series 3, 195-204(2011).
Aren, A.O., Sibindi, A.: Cash Flow Management Practices: An Empirical Study of Small Businesses Operating in the South African Retail Sector. Risk Governance and Control: Financial Markets & Institutions 4, 87-100(2014).
Xiao, W.: Problems and Countermeasures of Enterprise Cash Flow Management. DEStech Transactions on Environment, Energy and Earth Science, 2018.
Sula, V.: Cash Flows Management at the Enterprise Level. ECONOMY AND SOCIOLOGY: Theoretical and Scientifical Journal, 2015.
Dzingirai, M., Ndava, R.: Cash Flow Management Challenges Faced by Small Family-Owned Businesses in Zimbabwe. Binus Business Review, 2022.
AlShattarat, W. K., Nobanee, H., Haddad, A. E., Al Hajjar, M.: Working Capital Management, Operating Cash Flow and Corporate Performance. ERN: Panel Data Models (Single) (Topic), 2010.
Podgornaya, A. I., Romanov, K. V.: Actual Issues of Cash Flow Management in Enterprises in Russia. Gênero & Direito, 2019.
Plaskova, N., Prodanova, N., Ignatyeva, O., Nayanov, E. A., Goncharov, V., Surpkelova, A.: Controlling in Cash Flow Management of the Company. Eurasian Journal of Biosciences, 2020.
Downloads
How to Cite
Issue
Section
License
Copyright (c) 2024 Dalin Wang
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
