China Railway Construction Corporation Operating Cash Flow Management Evaluation and Suggestions in Financial Shared Model

Abstract

Operating cash flow management is a quite important component part of the capital management. It’s a reflection of the enterprise’s hematopoietic function, well reflecting the enterprise’s increment of value through their operating activities, and also a reflection of the enterprise’s profit quality. Taking China Railway Construction Corporation (hereinafter referred to as “CRCC”) as an example, this paper has firstly collected and calculated seven indicator data on the corporation’s operating cash flow management during 2012-2017, making a comprehensive evaluation on its operating cash flow management level in the five years after its implementation of financial shared mode by principal component analysis (hereinafter referred to as “PCA”). Secondly, putting forward that net operating cash flow (hereinafter referred to as “NOCF”) is the indicator for measuring a corporation’s operating cash flow management level, this paper has then compared the corporation’s average NOCF in five years before and after its implementation of financial shared mode, coming to a conclusion that the corporation’s operating cash flow management level has significantly improved after it’s implementation of financial shared mode. Finally, this paper has proposed some constructive suggestions on how to better improve a corporation’s operating cash flow management level. Keywords—financial shared; cash flow management; evaluation; suggestion