Analyze the ability of an enterprise to recycle cash from the aspect of operating cash flow Compare the inflow and outflow of operating cash (1) The inflow of operating cash of an enterprise is greater than the outflow of operating cash of an enterprise. This shows that the ability of the enterprise's operating activities to create cash is relatively strong, can meet the needs of the enterprise's capital turnover, but can not say that the enterprise's ability to pay for the funds is very strong, because the enterprise's operating process in the current period also consumed some non-payment of cash costs, such as depreciation of fixed assets or amortization of intangibles, etc., as mentioned above, the enterprise's operating cash inflow must be able to compensate for the operation of the non-payment of cash costs, so that Enterprises can provide strong financial assurance for future equipment upgrading and acquisition through capital accumulation. In order to meet the daily turnover and compensate for non-cash costs, if the operating cash flow inflow, then the enterprise's operation is a very high quality and high efficiency of the operating state, the long-term accumulation of the enterprise's future development will certainly lay a solid foundation, provide a strong guarantee.　(2) The operating cash inflow of the enterprise is equal to the cash outflow. This indicates that the enterprise's cash can meet the daily operational needs, but the enterprise operating costs also include some non-cash costs, if the operating cash can not compensate for these non-cash costs, when the enterprise business risk increases or must be renewed such as equipment, business operations will face greater difficulties. In the normal operating period continues to appear in this situation, the quality of cash flow from operating activities is poor.　(3) Cash inflow from operating activities is less than cash outflow from operating activities. At this time, the enterprise cash inflow from operating activities is insufficient to maintain the payment of funds required for the daily operation of the enterprise. Enterprises in the growth stage will usually be the case, a large amount of funds for investment expenditures, operating income is little or no operating income, this situation is inevitable in the growth stage of the business cycle. However, after entering the normal business process, if this situation occurs, it shows that the business situation is poorer, the enterprise will face serious financial risks.