Cash Flow Data Preferred to GAAP Reporting – GTNews Survey

Seventy three per cent of corporate financial executives believe that standard GAAP reporting does not provide analysts with sufficient information about their company’s liquidity according to a survey conducted by SunGard Treasury Systems and GTNews. However, 75 per cent also confess that the data available to them about the liquidity of such executives’ companies is sub-optimal. In June 2003, GTNews.com polled its international readership consisting of corporate financial executives. Over half of the qualified responses were from firms with annual revenue in excess of US$1bn. The results clearly indicated that financial executives of large companies are concerned about banks and investors relying solely on GAAP-reported figures as such executives place importance on additional cash flow data. ‘Financial executives need real-time visibility into free cash flow because that one metric is the best indicator of the health of your company,’ said Ken Dummitt, president, SunGard Treasury Systems.

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