A true indicator of a business's health is its ability to generate positive cash flows on a sustainable basis. Whether it's a startup, growing, or established business, it is extremely important to have sufficient cash available at all times to generate sales, pay vendors, manage operating expenses, service debt obligations and such.
We have the expertise to look into the numbers and analyze the main drivers of cash flows to provide you with visibility and actionable insights into your cash flow forecast so you can improve and maintain healthy cash situation at all times.
Are you generating sufficient operating cash from each dollar of sales/services to run and grow your business?
As you grow your business and take on additional debt, do you have the ability to pay for growing expenses and liabilities, and fulfill debt obligations? Lenders and investors love to see strong cash flow coverage ratios since it's a good indicator of the robustness of your business model.
Owners and equity holders prefer to see strong positive free cash flows after all operating expenses, obligations and capital expenditures are met.
This also is a reflection of the valuation of the business, and goes a long way in raising additional capital from investors/lenders for growth and expansion plans.
Are you good at collecting cash from customers in a timely manner?
Do you have leverage with vendors to get favorable payment terms?
Are you rotating cash through your business reasonably well and putting it to good use to attract more sales and revenues? We will ensure your cash conversion cycle stays as efficient as possible, and show you ways you can convert sales to cash quickly.
On a tactical level, it is important to have good standing when it comes to meeting your short-term obligations with vendors, landlords, and other entities that aid and support your business operations.
The quicker you can convert working capital/inventory into sales/revenues, the easier it gets to not only grow but also maintain healthy cash flows that is needed to invest back into your business.
Let us help you make your dollar work as hard as you do. We can give you actionable insights into how you can make the most out of every dollar of sales, and provide you solutions and recommendations so that you can make smart decisions on how you run and grow your business.
We will analyze past financials performance and look under the hood to identify actions you can take on how you operate/make decisions that will improve and grow your cash flows. We will help with cash flow projections and bring visibility into cash that is trapped within net working capital, AR/AP and inventory and identify focus areas so you can make appropriate changes and improve cash flows going forward.
We will evaluate your business model, sales, product/service strategy, operating model/expenses, AR, AP, inventory and net working capital and find ways to free up cash so you can meet your payment obligations.
We will also identify if there is a need to change pricing/product offerings to drive higher margins, as well as reducing certain operating expenses and zero-in on specific drivers/actions you can take to improve your cash flow situation and have cash available to reinvest in your business.
We have the expertise to evaluate and analyze all major drivers that impact cash flows, look at important cash flow metrics such as operating cash flow margins, free cash flow ratios, cash conversion cycle and working capital ratios, and provide you a clear picture of your cash flow situation.
We will recommend ways you can improve cash flow and liquidity in your business to manage uncertainty and volatility. We have the tools to model cash flow projections under various scenarios, so you have good visibility into future cash flow needs and manage them efficiently.