Under the condition of market econo

Under the condition of market economy, the cash flow of enterprises to a large extent determines the survival and development ability of enterprises. Based on the important position of cash flow statement in financial reporting system, this paper first introduces the basic concept of cash flow and the practical significance of cash flow analysis, the purpose of this paper is to explain that as the user of accounting information, it is no longer satisfied to know the financial status of the enterprise from the angle of working capital, but to know the financial status of the enterprise from the more direct interest relation, namely cash. The index analysis method of cash flow is discussed again. Using these analysis methods, we can fully interpret the financial information of the enterprise embodied in the cash flow statement, so that the users of financial statements can fully understand the financial situation of the enterprise, and find out the problems in the financial governance of the enterprise, scientific financial forecast and decision-making to provide a correct basis.