While all companies seek more profitability, few companies seek “more” risk. In addition all companies need to maintain a certain level of liquidity even without the benefit of dedicated resources (i.e. a treasury function).
Unfortunately, most economists are forecasting 2024 to be a year of uncertainty; some are forecasting a recession in the first half of 2024.
Persistent rates of inflation, uncertainty among consumers and uncertainty around access to bank credit (i.e. tighter standards and higher spreads) will complicate any company’s ability to manage its profitability, liquidity and risk and answer the question “Is my company over borrowed, under-invested or over exposed to the market?”
To reduce levels of risk and maintain liquidity which can be caused by exogenous factors, companies may wish to look internally to more controllable actions such as:
During this 1 hour webinar speakers from Cashbook will focus on the cash conversion cycle (CCC) and how faster cycle times and predictive analytics could be used to reduce a company’s dependence on external and uncontrollable forces..