Cash flow is more important then operation margin for long-term survival of organization
The major cash flow funding for a business is working capital
Shareholders investment or long-term bank borrowing is used to pay expenses and payables for inventory
Then sales and collection on receivables is an important cycle to a working capital self-funding
As a CFO’s, we need to make sure receivables are in our control. Dashboard and turns are important measurements that CFO’s needs to look at and delivery monthly
Through operational excellence in six sigma, lean, TAT, productivity saving organization can free up working capital
This chart is example in a supply chain business, reduce waste and focus on value process enhanced customer value and reduce cash flow requirement
No comments:
Post a Comment