Cash Is King Maintain Liquidity, Build Capital, and Prepare Your Business for Every Opportunity

An illuminating exploration of the importance of your company's cash position and the steps you can take to ensure organizational liquidity

In Cash is King, working capital and cash strategist Peter W. Kingma delivers an insightful and practical discussion of why your company's cash position should be on an equal footing with sales, cost, and service, and how to make that happen. You'll learn why cash is the fuel in your corporate engine and discover the attributes of an organizational cash culture and how to adopt them within your own firm.

While explaining some of the most important?and most misunderstood?corporate finance concepts, this book is not a finance textbook. Instead, it uses case study examples to offer concrete suggestions for improvements in your company that increase the availability of cash when you most need it. You'll also find:

• Discussions of the importance of sufficient liquidity for operational concerns, research and development, and capital improvements
• Explorations of the consequences of insufficient cash positions
• Examinations of the ripple effects of seemingly small decisions that affect cash supply

An essential resource for managers, executives, and business leaders everywhere, Cash is King is an effective and hands-on exploration of cash as the lifeblood of any modern commercial entity and an incisive guide to ensuring that your company will have enough of it when its required.

Introduction ix

Chapter 1 Order-to-Cash 1

Chapter 2 Procure-to-Pay 23

Chapter 3 Forecast to Fulfill 43

Chapter 4 Logistics 55

Chapter 5 Production 65

Chapter 6 Controller 81

Chapter 7 Metrics 97

Chapter 8 Resiliency 125

Chapter 9 Cash Leadership Office (CLO) 139

Chapter 10 Nonmanufacturing Examples 153

Acknowledgments 173

About the Author 175

Index 177

PETER W. KINGMA has over thirty years’ experience advising some of the largest and most recognizable corporations in the world on their financial positions. He is an expert in helping firms increase cash on hand from operations and the effective use of capital. He is a strategy and transactions principal at EY Parthenon, leading the working capital practice in the Americas.