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Cash Is King
Book

Cash Is King

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

Wiley, 2024 more...


Editorial Rating

7

Qualities

  • Analytical
  • Applicable
  • Background

Recommendation

Business experts often invoke the dictum “cash is king,” but cash takes a back seat when a company is chasing revenue. Firms with strong cash positions are more resilient and can seize new opportunities, so cash management is crucial. Consultant Peter Kingma drives home this point using the narrative of the fictional Owens Inc. Sometimes his attempts at humor seem a bit forced, and extolling the advantages of using outside consultants can appear self-serving. Nonetheless, his approach is focused and comprehensive, and entrepreneurs will find this a helpful financial reference.

Take-Aways

  • A business should consider its cash flow and not just pursue revenue.
  • The procurement process, from order placement to payment, affects a company’s cash position.
  • Other business functions, such as marketing and warehousing, can also help optimize the cash position.

About the Author

Peter W. Kingma is a principal with EY Parthenon, leading the consultancy’s working capital practice in the Americas.