Taking a fresh look at cash management

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Note from the editor

Cash flow is often under appreciated at even well-run companies. In part that’s a function of how generally accepted accounting standards (GAAP) have evolved.

Although GAAP requires a cash flow statement, the income statement and balance sheet are based on accrual accounting, which doesn’t incorporate real cash flow.

Even the investor community, which typically focuses on earnings, often under-values cash.

But cash can be a company’s secret weapon, because how you manage it can have a big multiplier effect on your company valuation. 

By improving your cash flow, you can save your company three times the savings amount in terms of valuation, boosting your company’s leverage, Jeff Epstein, a former CFO of software giant Oracle, has said. 

To help you take a fresh look at how you manage your cash, we’ve selected a handful of stories from CFO Dive that bring in specialists’ views on the topic. We hope you find useful take-aways from these experts’ insight as you and your team give cash management new thought.

Robert Freedman Editor

5 signs you're about to run out of cash

Cash is surprisingly hard to track, and knowing when it's about to run out is harder if you don't know the warning signs.

• Published Sept. 12, 2019

Getting your cash position 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.

• Published May 27, 2021

Making the most of the cash-to-cash cycle

The finance function can encourage efforts by procurement to provide value when it comes to arranging and reviewing supplier contracts.

• Published March 15, 2020

How to smooth your lead-to-cash process

The CFO is best positioned to turn an often unruly system into a seamless customer experience.

• Published Nov. 11, 2019

3 strategies to create a cash culture

An estimated $2.5 trillion is tied up in working capital at companies across Europe and the United States. Freeing up that cash could help CFOs reach strategic capital allocation goals.

• Published June 9, 2021

Taking a fresh look at cash management

Cash flow is often under appreciated at even well-run companies - Even the investor community, which typically focuses on earnings, can often under-value cash. But cash can be a company’s secret weapon, and how you manage it can ultimately play a big multiplier effect on your company valuation.

included in this trendline
  • Making the most of the cash-to-cash cycle
  • 3 strategies to create a cash culture
  • How to smooth your lead-to-cash process
Our Trendlines go deep on the biggest trends. These special reports, produced by our team of award-winning journalists, help business leaders understand how their industries are changing.
Davide Savenije Editor-in-Chief at Industry Dive.