RESEARCH ON WHETHER KEEP CASH FLOW STABLE CAN REDUCE COMPANY RISK

Abstract

Cash flow is the vitality of a company's reality. It actually fulfills the needs of the company's daily business activities by completing a transaction. Only after the receivables and payables are paid through cash flow, the transaction is truly over. Enterprises are in an invincible position both at the economic and legal levels. Companies want to extend the due period and shorten the collection of receivables as much as possible. The purpose is to store enough cash in their own systems. Companies are spending money and earning money all the time. Cash will undoubtedly play the role of blood and maintain the cycle. Business survival. Whether keep cash flow stable can reduce company risk, it’s an attractive question.