Más contenido relacionado Más de Grant Thornton LLP (20) Working capital: 5 tips to create a cash culture for investment and growth2. © Grant Thornton LLP. All rights reserved. 2
Working capital = Cash
Even modest improvements in performance
can free up significant money for strategic
investments in organizational priorities.
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A strong, pervasive working capital/cash culture
lays the groundwork for a more efficient organization
and generates higher growth and improved
profitability.
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From Mastering Talent Planning: A Framework for Success
The National Center for the Middle Market surveyed 400
C-suite middle-market executives about working capital
perceptions, practices, challenges and opportunities.
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Companies with revenue growth of 10%+
prioritize working capital management
FASTEST-GROWING COMPANIES
Make capital management their top priority
37% of fastest-growing companies
20% of slowest-growing companies
Read more
Working capital: How to
find extra cash for growth
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Companies with revenue growth of 10%+
prioritize working capital management
FASTEST-GROWING COMPANIES
Manage working capital well through KPIs
and a cash culture
Up to 4x better than below-average peers
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Companies with revenue growth of 10%+
prioritize working capital management
FASTEST-GROWING COMPANIES
Benchmark success
65% of fastest-growing companies
45% of slowest-growing companies
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Companies with revenue growth of 10%+
prioritize working capital management
FASTEST-GROWING COMPANIES
Strategize by discussing capital management
1x/week fastest-growing companies
1x/month slowest-growing companies
Get the full details
Working capital: How to
find extra cash for growth
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Clear KPIs improve working capital management, free
up cash and accelerate growth
46% Operating cash flow
Most-popular KPIs measured by fastest-growing companies
36% Liquidity/working capital ratios
34% Current ratio
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4 key areas where fastest-growing companies achieve
best-in-class working capital management
Payables 96% take advantage of vendors' early-pay discounts
Receivables 42% offer trade-term incentives
Inventory 56% use production or operations techniques
e.g., Lean, Six Sigma, Kanban, ROI, value tracking
Digitization 62% use resource-planning software for inventory management
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Create a cash culture by taking 5 steps
COMMUNICATE
that
working capital =
cash
SHARE
INFORMATION
for buy-in
at all levels
ASSIGN
clear
responsibilities
by level
CREATE +
IMPLEMENT
policies based
on KPIs
PROVIDE
incentives
1 5432
More info at
Working Capital Management: How
Much Cash Is Your Business Tying Up?
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Free up working capital for investment and growth
Gather data +
calculate key indicators
Benchmark against
industry + competition
Review policies,
procedures + incentives
Define KPIs + set targets
Measure, monitor,
enhance, remediate
Define + implement
changes in incentives,
accountability + behaviors
Define + implement
changes in procedures
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Learn more about working capital management
READ
SEE
5 tips to create a cash culture ― summary of insights
Working capital: How to find extra cash for growth
Working Capital Management: How Much Cash Is Your Business Tying Up?
DOWNLOAD
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