(1. Net operating cash flow)
Of course, the net operating cash flow is best positive, because it represents the hematopoietic function of the enterprise itself, but there will be problems. When an enterprise is in the investment period, that is to say, when it first enters, the net operating cash flow is mostly negative. Once the product appears, the net operating cash flow is positive. Generally, we call it a cash flow product, which can bring cash flow. When the product has entered the mature stage, it will be more dangerous in the future, and the net operating cash flow is positive, sometimes more dangerous, indicating that the enterprise has entered a relatively stable mature stage and may decline in the future.
Therefore, when the net operating cash flow is positive, and the positive number is particularly large, you must think of investment at this time, because only investment will cultivate new future cash flow for enterprises. So the bigger the cash flow, the better. There is more and more cash, and it is unprofitable for enterprises to leave too much cash, so they must find ways to invest.
(2) Net cash flow generated by financing
So is borrowing money. If an enterprise can issue shares, the net cash flow generated by fund-raising will be particularly large. But when I grow up, I have to invest in addition to supplementing operating cash. When an enterprise has money, it has the impulse to invest. Everyone buys Diwang because of abundant liquidity. In fact, the money is given by the state. If you put it all in your hand, you might as well invest quickly. If the money is not invested, it will be wasted and no income will be obtained.
When New Oriental was listed on NASDAQ, it didn't want to make good use of so much money, because there was no shortage of money, and the project had no accounts receivable, all of which were cash flow. Students pay tuition first, and its program is very good, with a large cash flow. When it was reissued, it was financed and the cash flow came in. With so much money left, it doesn't know what to do. It should definitely be an investment, but I didn't think of the investment project, and I was afraid of losing it. It is especially good at education. Not necessarily good at other things, but also afraid of being cheated, but not satisfied with letting shareholders go. Then I thought about it and set up a venture capital company first.
Enterprises are impulsive to invest, not only when the market expectation is optimistic, when the net cash flow is positive, but also when it is very large, or when the net cash flow is positive, or both are positive, it will give you investment pressure. Rational operators can still manage it, while irrational operators will definitely take money out to play, which will promote the frequent appearance of land kings. This is an irrational investment. In the end, as soon as Wang Di reduced the price, it was all over. However, all buyers of Wang Di are mainly state-owned enterprises. It is not afraid, because it can be mortgaged when there is no money. After the mortgage loan is over, the bank will find a way. It's habitual thinking. I dare not. He has to consider the return on investment and which projects to buy. He originally said that the purpose of issuing shares was to buy some local educational projects. It turns out that none of them are so good, and they can coordinate the scale and produce benefits.
(3) Net investment cash flow)
If the net operating cash flow is negative, now the money can't be sold and the bank won't give you a loan, UnionPay will be nervous. There is an excellent project at this time, so don't miss the opportunity. The net operating cash flow is negative, so you can't borrow money for financing. Now you have some money in your hand. Do you want to invest or not? Don't invest, because no matter how good the project is, if you don't give money today, you will earn it back tomorrow, and there is an investment cycle. What if the investment is not good? Investment is risky, don't be tempted. When both capital chains have become negative, the third one must find a way to make it positive, and the previous investment should be recovered.
When the financial crisis comes, the first thing to pay attention to is to tilt the main business, which is actually to sell the diversified investments in the past and get the money back to offset the negative net cash flow generated by operation and financing, so as to maintain the stable development of enterprises. If this is the net cash flow from operation, this is the net cash flow from financing, and the net cash flow from investment is in the middle. Whether it is positive or negative depends entirely on your judgment of the two. Therefore, it is a reservoir of funds and an investment behavior of enterprises. From the point of view of cash flow, it acts as a reservoir. When the water outside is full, you let it in. On the one hand, lay the foundation for long-term development and lay the foundation for development and profitability. On the other hand, it also allows the huge amount of money stored outside to have a way out, avoiding the high cost of idle funds and ugly statements. But once the two have been at a low ebb and there is no money, this flow will be divided outward, which is a very critical cash flow management method.