(1) cash flow trend analysis

trend analysis is also called multi-period comparative analysis. According to the different comparative data, trend analysis can be further divided into cash flow item trend analysis, cash flow ratio trend analysis and cash flow structure percentage trend analysis; According to the different bases compared, it can be further divided into ring-based trend analysis and fixed-base trend analysis. Trend comparative analysis can take basic data as a reference and provide a standard for evaluating the cash flow situation of enterprises in a specific period. You can also predict the future by observing and analyzing the changing trend of cash flow. Therefore, trend analysis can evaluate the financial situation of enterprises more objectively and fairly.

(2) Analysis of cash flow structure

The structure of cash flow statement is divided into three parts, namely, net cash flow from operating activities, net cash flow from investment activities and net cash flow from financing activities. For enterprises, the positive and negative components of net cash flow generated by each activity are different, which will produce different cash flow results, and then will have an important impact on the financial situation of enterprises. The analysis of cash flow structure includes the analysis of cash inflow structure, outflow structure and inflow-outflow ratio. At the same time, the historical comparison of inflow-outflow structure and the comparison of the same industry can get more meaningful information. Generally speaking, for a healthy and growing enterprise, the cash flow of operating activities should be positive, the cash flow of investment activities is negative, and the cash flow of financing activities is positive and negative.

(3) Analysis of relevant financial ratios

A. Liquidity analysis. Liquidity analysis refers to the ability to quickly convert assets into cash. What an enterprise can really use to repay its debts is cash flow, and the comparison between cash flow and debt can better reflect its solvency. The financial ratios reflecting liquidity mainly include: cash maturity debt ratio, cash current debt ratio and total cash debt ratio.

B. analysis of the ability to obtain cash. The ability to obtain cash refers to the ratio of operating cash inflow to input resources. The financial ratios reflecting the ability to obtain cash mainly include: operating cash flow per share, cash collection ratio of main business and cash recovery rate of all assets.

C. financial flexibility analysis. The so-called financial flexibility refers to the ability of enterprises to adapt to changes in the economic environment and make use of investment opportunities. This ability comes from the comparison between cash flow and the need to pay cash. If the cash flow exceeds the need, it is adaptable if there is surplus cash. Therefore, the measure of financial flexibility is to compare the operating cash flow with the payment requirements. The financial ratios reflecting financial flexibility mainly include: cash payout ratio, cash dividend guarantee multiple, and cash meeting investment ratio.

D. Income quality analysis. Income quality analysis mainly analyzes the proportional relationship between accounting income and net cash flow. From the perspective of cash flow, the financial ratios to evaluate the quality of income mainly include: operating index, surplus cash guarantee multiple and operating cash stability.

operating index refers to the ratio of net cash flow from operating activities to cash due from operating activities (= net cash flow from operating activities ÷ cash due from operating activities), which is an ideal financial ratio reflecting the quality of income. The index is less than 1, indicating that the income quality is not good enough. The information needed to calculate this index can be extracted from the cash flow statement compiled by indirect method. In which:

cash due from operating activities = net profit from operating activities+non-cash expenses.

non-cash expenses = accrued asset impairment reserve+withdrawn depreciation+amortization of intangible assets+amortization of deferred expenses

net profit from operating activities = net profit-non-operating income

non-operating income = income from disposal of fixed assets+loss of scrapped fixed assets+financial expenses+investment loss or profit and loss

The surplus cash guarantee multiple is the ratio of net cash flow from operating activities to net profit (= net cash from operating activities) This indicator is mainly used to reveal the difference between the net cash flow of operating activities and the current net profit, and also reflects how much cash is guaranteed in the current net profit. Generally speaking, when the current net profit of an enterprise is greater than 1, the index should be greater than 1. However, if the enterprise manipulates the book profit, there is generally no corresponding cash flow. This index plays a positive role in preventing enterprises from manipulating book profits and misleading report users. If it is found that some enterprises have high book profits, but the cash flow of operating activities is insufficient or even negative, we should judge the operating results of enterprises with extra caution.

operating cash stability is the ratio of depreciation expense accrued by an enterprise to net cash flow generated by operating activities (= depreciation expense accrued ÷ net cash flow generated by operating activities). This indicator reflects the stability of cash flow generated by the company's operating activities. The larger the index, the more stable the net cash flow generated by operating activities. The bigger the indicator, the better.

based on the analysis of cash flow, enterprises should also take these ratios as the performance evaluation indicators of departments or enterprise managers, so that enterprise managers really pay attention to cash flow, thus promoting the healthy and sustainable development of enterprises through cash flow management.