Cash Flow Tightness

Mar 27, 2021

Is your cash flow tighter than you would like?

Do you understand why this is?

Here are some areas to review. What is the business’:

  • Profitability – past and more recent
  • Working capital position – stock, debtors, WIP
  • Status of major projects, any timing issues
  • Growth profile – high growth generally absorbs cash
  • Seasonality issues

What does the future hold?

Prepare a financial forecast based on the business’ key drivers to gain an understanding of the future.