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, 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.


Related reading

New consumer banking head for Citi Asia Pacific