Getting your working capital ratio right

Whether your ratio should be closer to 1.2 or 1.8 is less important than what your cash conversion cycle is telling you, cash management specialists say.   

By Ted Knutson • May 27, 2021

Biden aims to raise $700B over 10 years with tougher tax enforcement

The Biden administration during the next decade seeks to close the "tax gap" by 10% through more effective IRS pursuit of corporate and individual tax cheats.

By Jim Tyson • May 21, 2021

Legislation needed to smooth transition from LIBOR: Fed official

The Federal Reserve will bar the use of LIBOR in contracts after December 31, Vice Chair Randal Quarles said, underscoring the need for legislation to smooth the switch to a new reference rate.

By Jim Tyson • May 20, 2021

Labor shortages, rising wages intensify inflation threat: Summers

Despite rising wages, many companies are short on workers, signaling a growing threat of inflation, former Treasury Secretary Lawrence Summers said.

By Jim Tyson • May 19, 2021

Up from the ashes: retailing CFOs get ready for a consumer rush

Retailing CFOs preparing for a "spring-loaded" consumer splurge provide insights for financial executives in industries less challenged by the coronavirus.

By Jim Tyson • May 18, 2021

Only 20% of CFOs can forecast revenue, earnings beyond a year: survey

Even after the pandemic shock, most CFOs forgo effective scenario planning and more than half lack the ability to forecast revenue and earnings beyond six months, according to a Prophix Software survey.

By Jim Tyson • May 11, 2021

Half of companies lack LIBOR phase-out plan: Duff & Phelps

Despite regulatory pressure, more than half of financial services firms have not determined when they will stop using LIBOR in new contracts, according to a Duff & Phelps survey.

By Jim Tyson • May 10, 2021

Up from the ashes: Restaurant CFOs prepare for boom

Profit-hungry restaurant CFOs blindsided by the pandemic get ready for robust economic growth, offering lessons for leaders in less-stressed industries.

By Jim Tyson • May 6, 2021

Rising inflation, higher taxes pose 'headwinds' to growth, Schenker says

Look for 'eye-popping inflation numbers' and 'horse trading' on taxes as potential economic drags, economist Jason Schenker says. 

By Jim Tyson • May 6, 2021

'Gender bonds' empowering women likely to improve issuers' credit outlook: Moody's

Issuance of bonds tied to women’s economic empowerment will likely grow while boosting issuers’ credit standing, Moody’s said.

By Jim Tyson • May 5, 2021

Walmart gives suppliers option for early payment to help increase access to capital

The retailer is expanding its early payments program through a partnership with the financial technology company C2FO.

By A.B. Brown • May 5, 2021

Biden climate policy poses credit risks for 'carbon-intensive' companies: Moody's

Biden administration plans for curbing climate change will increase credit risks for companies in carbon-intensive industries while creating business opportunities, Moody’s said.

By Jim Tyson • April 30, 2021

Can't get funding? It's likely not for the reason you're told

Don’t expect investment firms to be upfront about why they turn down your company, SafeGraph CEO Auren Hoffman says.

By Robert Freedman • April 30, 2021

Multinationals reported $6.16B in negative forex exposure for Q4: study

A decline in negative foreign exchange impact during the fourth quarter was probably "the calm before the storm" that likely occurred during the first quarter of 2021, according to Kyriba.

By Jim Tyson • April 29, 2021

Biden tax hikes won't change company credit plans: Moody's

Companies have shown they’re impervious to tax policy changes in part because of low interest rates and investors’ hunt for yield.

By Robert Freedman • April 28, 2021

Biden plan would increase taxes on multinationals by $1.2 trillion over 10 years: study

Biden’s proposal to raise corporate taxes to fund $2 trillion in infrastructure spending would harm U.S. competitiveness, the Tax Foundation says.

By Jim Tyson • April 28, 2021

CFO role has grown during pandemic: Accenture

CFOs have taken on greater responsibilities since the onset of COVID-19, especially those at government agencies handling record pandemic aid, Accenture said.

By Jim Tyson • April 27, 2021

Up from the ashes: How airline CFOs are preparing for the post-pandemic rebound

CFOs of airlines challenged by the pandemic are preparing for a rebound in demand, offering lessons for financial executives in less-stressed industries.

By Jim Tyson • April 26, 2021

Capital raises, along with expectations, getting bigger, VC funder says

For hot companies in hot markets, the amounts are exceptional, Christoph Janz of Point 9 Capital says.

By Robert Freedman • April 23, 2021

SPAC market during Q1 showed 'explosive growth': Duff & Phelps

The SPAC market boomed during the first quarter of 2021, Duff & Phelps said, noting that SPAC warrants this month have come under regulatory scrutiny.

By Jim Tyson • April 23, 2021

Businesses can only expect limited boost from stimulus checks: Fed study

Households have channeled federal stimulus checks primarily towards savings or reducing debt, giving businesses just a limited lift from consumer spending, according to the Fed.

By Jim Tyson • April 22, 2021

Rising number of IRS corporate audits end in 'no change': tax expert

Companies have outgunned IRS auditors with high-paid accountants and attorneys, pushing up the number of audits that result in no change to tax filings, tax experts say.

By Jim Tyson • April 20, 2021

Democrats, Republicans finalizing draft LIBOR bill, pledging cooperation

The legislative effort to smooth the phase-out of LIBOR will test whether the two parties can cooperate in heeding warnings from regulators of systemic risk.

By Jim Tyson • April 19, 2021

Senate confirms Gensler to lead SEC in 53-45 vote

While leading the Biden administration’s watchdog of Wall Street, Gensler is expected to toughen aspects of oversight that were eased during the Trump administration.

By Jim Tyson • April 14, 2021

M&A supports buyers' stock price performance during Q1, study finds

Dealmaking paid off for acquiring firms, boosting their stock prices to a record first-quarter performance, a Willis Towers Watson study found.

By Jim Tyson • April 13, 2021