CTC Guides
An in-depth look at a specified topic that is developed via interviews with treasury executives. Presented as bi-monthly case studies, with practical applications and tools such as models and checklists.
Treasury metrics are hard to find. Only 50% of companies measure their treasury’s performance according to AFP research. But more want to, and there are multiple trends that are forcing more treasuries to begin to track their performance. As treasury plays an increasingly strategic role in the organization, its visibility grows and with it senior management and Board scrutiny. Finally, the economic environment has shined a spotlight on treasury’s traditional activities of managing cash. Boards and senior management want greater visibility into liquidity, demanding new measures as a result. This CTC Guide explains the trends behind the search for treasury metrics, outlines multiple approaches to creating a treasury scorecard or dashboard and includes real-life examples of dashboards and scorecards thatcompanies use. It also offers helpful hints on how to begin building your own treasury scorecard.
The science and the art of constructing the right capital structure and the role treasurers play in optimizing their companies’ use of capital to support corporate strategy and maximize value.
Excerpt:
Methodology
We surveyed capital structure theory and compared it to the “real-life” decision-making factors firms use when arriving at their ultimate decisions. We interviewed treasurers from diverse organizations, from cash-rich tech firms to cash-strapped, highly leveraged multinationals. We talked to them about the key factors driving the decision-making at their firms, from target ratings to target liquidity, and how they adjust their capital structure to support their companies’ business.