Net working capital, from balance-sheet measure to cash-flow signal
Net working capital compares short-term assets with short-term obligations, but the chosen definition changes the result.
By Marcus V. Thorne 1 week agoSection
Deals
Operating cash flow formula, with a worked example
Calculate cash from operations by reconciling net income for non-cash items and working-capital movements.
By Amanda Ross 1 week agoCorporate treasury functions, from cash forecasts to financial risk
Corporate treasury keeps cash available, arranges funding, manages financial risks and connects those decisions to company strateg...
By Rafael Ortiz 2 weeks agoWhat is a natural hedge?
A natural hedge reduces risk through offsetting operating, financing or investment exposures rather than chiefly through derivativ...
By Rafael Ortiz 2 weeks agoUnlevered free cash flow measures cash before financing costs
UFCF shows the cash a core business generates for debt and equity providers, and is commonly projected in enterprise-value DCF mod...
By Amanda Ross 2 weeks agoIntercompany netting: settling the net balance
How corporate groups offset mutual subsidiary balances, reduce gross settlement flows and focus on the amount that remains payable...
By Amanda Ross 2 weeks agoCash flow forecasting methods: a practical selection guide
Build a cash schedule first, then match moving averages, smoothing and scenarios to the pattern in each cash-flow line.
By Amanda Ross 2 weeks agoWhat is reverse factoring?
A buyer-led financing arrangement can pay suppliers early while the buyer pays a finance provider at invoice maturity.
By Marcus V. Thorne 3 weeks agoWhat a corporate treasurer does
Corporate treasury links daily cash management with funding, investment, capital-allocation and financial-risk decisions.
By Amanda Ross 3 weeks agoLiquidity management keeps cash available without leaving too much idle
Liquidity management is treasury’s process for matching accessible cash and funding to payments, risk and opportunity.
By Marcus V. Thorne 3 weeks agoWhat is a revolving credit facility?
A revolver lets a business draw, repay and reborrow up to an agreed limit, providing liquidity for short-term cash needs under ter...
By Amanda Ross 3 weeks agoA 13-week cash flow forecast gives treasury a weekly liquidity view
Build and maintain a rolling 13-week cash forecast to see receipts, payments and potential funding gaps before they fall due.
By Amanda Ross 3 weeks ago