Liquidity Generation & Cash Management

Recent studies reveal that after net profit growth, liquidity generation is the key performance indicator for investors. Recognizing the importance of both of these financial indices, many management teams fail to measure liquidity generation on an operational level. Management focus is often oriented to objectives measuring revenue generation, customer growth, and profit and loss. As important as those measurements are, they alone are not suitable for measuring and controlling liquidity as the key to generating cash comes from operational and supply chain optimization.

For stressed or distressed companies cash is the number one resource. Generating liquidity and competently managing cash provides a company with opportunities to implement financial and operational restructuring. This leads to new investment on the part of investors and the opportunity for continued growth of the enterprise. Conversely, while organizations that are cash strapped have certain options, the list is greatly reduced.

Throughout any economic cycle, it is critical that a company accurately project, track and communicate to their lenders and investors their ability to generate and manage cash flow. At MainStream, we work with management teams to enhance their awareness and knowledge on how cash is generated, how it is dispersed throughout the organization and how to promptly identify and implement strategies allowing them to better generate, use and manage cash. Our professionals take a hands-on approach and work with your team to implement practical and pragmatic solutions to build a culture that is focused on generating and managing cash.