Chief financial officers (CFOs) are facing significant cash management challenges regardless of whether their organisation is cash-rich or cash-poor, according to a report by Ernst & Young (E&Y).
The report, entitled ‘Drought or Drowning? Cash Challenges for CFOs at Both Ends of the Liquidity Spectrum’, says that the uncertainty in the economy of recent years meant that there were many CFOs who found themselves in both situations. It identifies the complexities at both ends of the liquidity spectrum and assesses the opportunities and considerations to help CFOs steer their company through the challenging economic environment.
It adds that cash hoarding is a problem both for governments seeking for ways to stimulate growth and for smaller companies desperate for finance. The report suggests that in the eurozone, corporates collectively hold around €2 trillion, FTSE 100 companies in the UK hold around £750m and the figure for US companies is in excess of US$2 trillion.
Cash-flow based metrics now feature prominently alongside traditional revenue measures of business performance in the key figures or financial summary pages of any public company.
With the end of 2017 fast approaching, many finance professionals might be counting down the days with some degree of dread. Year End is just around the corner and with it comes the many long hours accountants will spend going over balance sheets and profit and loss accounts, investigating account irregularities and chasing sign offs.
The EU and US’ shift in accounting standards may bring balance sheet losses and increase credit risk, according to James Elder, director of risk services at Standard & Poor’s (S&P) Global.
The US dollar and debt yields falling on the North Korea missile test, treasury being a top target for cyber criminals and why treasurers aren't into real-time payments all hit the latest headlines in the world of treasury this week. Don't miss our ten top news stories from around the world.