Liquidity Management / 13-week Cash Flow Forecasting

Effective planning and management of liquidity is crucial in times of business distress and/or market disruptions. This allows companies to maintain adequate control of resources and redirect them to the highest ROI priorities.

At Catalycs, we work with CFOs to produce an effective cash management system consisting of:

A 13-week cash flow tool to allow visibility and active management of future cash inflows/outflows

An actuals-to-forecast reconciliation tool to understand the variances and increase forecast precision

A detailed assessment of liquidity improvement opportunities including size of prize and feasibility of implementation

What is it?

Rolling forecast of liquidity at an entity level to control and manage cash
Living document, updated weekly with report of variances versus actuals
Bottom-up buildup based on receipts and disbursements, in contrast to indirect approach
Used by management, creditors, and advisors during a turnaround/restructuring

What is it used for?

To assess a company's near-term liquidity
To identify, implement, and track liquidity improvement measures including funding resources
To evaluate potential operational scenarios and KPI sensitivities on overall liquidity
To meet legal and covenant requirements in credit agreements
To understand a firm's operational structure and core/non-core divisions

Click here if you would like to learn more about our Liquidity Management / 13-Week Cash Flow Forecasting approach.