"Cash Flow" refers to the amount of cash inflow and outflow in a certain period of enterprise activity. The more rapid the economic development, the greater the effect will be of cash flow on operation and management. It dynamically reflects the financial condition of enterprises, helps management understand and evaluate its ability to acquire cash and cash equivalents, and forecast future development conditions of enterprises through evaluation of cash flow.
Enterprises should analyze cash flow to identify the source of the problem when it can not fully control cash flow or when the cash flow is not running fluently. This may be due to large amounts of cash being excessively invested in fixed assets, or because the inventory turnover ratio is low, or credit policy is too loose, etc.
Enterprises' cash flow condition can be improved through our professional's accurate analysis and evaluation of an enterprise's cash flow, and assistance in drawing up an efficient improvement program.