On the basis of analyzing the correlation among enterprise organization cycle mechanism,organization cycle efficiency,and cash flow from the perspective of organization cycle theory,this paper tries to set up difference equation model and differential equation model on measuring and evaluating the efficiency of organization cycle.By using the indexes of return on assets and cash flow,which significantly reflect the negative efficiency symptom of organization cycle,this paper tries to solve the application problem of evaluation model in the level of practice,and also to provide reference for the early-warning management of the enterprise risk and investor decision-making.