Archive for the Treasury Category


Be Liquid and Profitable — July 2017

This topic involves Treasury. A key element of a firm’s liquidity and profitability is its working capital (current assets minus current liabilities). Converting accounts receivable and inventory to cash provides liquidity for paying creditors, investing in growth opportunities, and distributing cash to shareholders. The quicker this conversion occurs the greater the company’s return on invested […]

Read More...

Keep the Cash Flowing — March 2017

This post involves Treasury. The CFO is responsible for the Treasury function in most firms. Among the key duties of the treasury effort is cash management. Effective cash management is critical for a company , because effective deployment of cash is the lifeblood of the firm, its profitability, its growth, and hence its value. The […]

Read More...

The Importance of Capital Structure — June 2016

This topic involves Treasury. As we have discussed in the past, Treasury efforts ensure the company has the liquidity necessary to function profitability, minimize the costs of financial transactions, and utilize the company’s cash in the most efficient manner practical. Other important Treasury functions include raising capital and the long term funding process. The CFO […]

Read More...

ASSESSING YOUR CASH NEEDS — February 2016

This post involves Treasury. Cash forecasting is an integral part of the CFO’s treasury duties. It helps management plan their operations and activities based on expected cash inflows and outflows. In cash forecasting, perfection is unattainable, but estimates consistently close to reality should be the goal of a robust cash forecasting program. As the actual […]

Read More...

Manage Your Cash to Drive Profitable Growth — August 2015

This topic concerns Treasury. Cash management is a key function of the CFO. Cash is the lifeblood of profitability and growth, thus the CFO must be intricately involved in optimizing best practices; bank relationships; and working capital management. Best Practices entail utilizing the most effective means of generating substantial positive cash flow on a timely […]

Read More...

A Framework for Financing Your Ideas – March 2015

This topic involves treasury. One thing all companies need is cash to finance their operations and growth opportunities. The most astute managements have a process which provides a platform for pro-active approaches to lenders and investors. The subsequent paragraphs describe the building blocks entrepreneurs can use to develop this very important tool. The first step […]

Read More...