How to Adjust Your Working Capital Management in a Changing Economy

Poll Results

The total number of votes in the poll was 73. Thank you all for voting!

Question: What was your key strategy to adjust your working capital management in response to recent rising interest rates?

Results

• More active cash positioning (29 votes, 40%)
• We pay later (6 votes, 8%)
• Collect faster/shorten terms (5 votes, 7%)
• All of the above (33 votes, 45%)

First observation

The poll results suggest that treasurers are taking a variety of approaches to adjusting their working capital management in response to rising interest rates. The most popular strategy is more active cash positioning. However, a significant number of treasurers are also taking a more holistic approach, using a combination of strategies. Let’s see what the webinar panelists think about this topic.

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Views of treasuryXL experts

Sugandha Singhal (treasuryXL)

“Treasury has to become agile, which is not possible without technology”

During the webinar, Sugandha Singhal, treasuryXL expert and Vice President & Head of Treasury at SRF, emphasized the need for agility in treasury and the importance of technology in achieving it. She stated, “Treasury has to become agile, which is not possible without technology.” Sugandha also highlighted the significance of measurement and monitoring in improving WCM, stating, “As a Treasurer, what you cannot measure, what you cannot monitor, you cannot improve.”

Patrick Kunz (treasuryXL)

“Cash is still king? No, Cash is emperor now!”

Patrick Kunz, treasuryXL expert and owner of Pecunia Treasury and Finance, emphasized the evolving role of cash and its impact on WCM. He stated, “Cash is still King? No, Cash is emperor now!” Patrick emphasized that cash remains a starting point, but working capital is the way to look forward. He also emphasized the importance of stakeholders and technology in treasury operations, stating, “A treasurer without stakeholders and technology, I wouldn’t know how to do the treasury.”

Matteo Greco (Kyriba)

“Interest rates are definitely the major topic as of today, but I would add a few more!”

Matteo Greco, the Product Marketing Director at Kyriba, highlighted interest rates as a major topic in the current economic landscape. He added, “Interest rates are definitely the major topic as of today, but I would add a few more,” indicating that there are other crucial factors to consider in WCM. During the session, he shed light on these additional key considerations.

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In summary, the live session provided valuable insights into the significance of effective working capital management, the role of technology and stakeholders in treasury operations, and the need for agility and adaptability in today’s economic landscape. The speakers’ quotes captured the essence of the discussion, emphasizing the significance of measurement, technology, and the evolving role of cash in WCM.

Many thanks to everyone who contributed, we really appreciate your input.