Cash is Still King
Book

Cash is Still King

The Survival Guide to Cash Flow Management

Keith Checkley
AMACOM, 1999
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Editorial Rating

8

Qualities

  • Innovative
  • Applicable

Recommendation

Keith Checkley believes in a simple premise: Cash flow is the heart of business. It is also the heart of his new book, a sequel to 1995’s Cash is King. Using a detailed and exhaustive discussion of the cash-flow cycle as his springboard, Checkley leaps into the depths of business strategy, product development and restructurings. Just when it’s all getting a bit too deep, he surfaces with penetrating case studies from companies like Dell. getAbstract recommends this book to financial and non-financial pros alike, all of whom will benefit from its succinct definitions of finance terms and its clear explanation of critical mathematic formulas. While many business and management books suffer from a lack of hard fact and applicability, Checkley gives you the numbers, or more importantly, he gives you the knowledge you need to crunch your own.

Summary

Cash Flow

Cash is the center of the capital cycle. Cash allows companies to pay taxes, buy fixed assets, research and develop projects, pay and collect debts, pay for labor and raw materials, buy and sell stock, and more. Cash flow is hard to predict because it is based on projections of future operating income, which itself depends on several variable factors, including the risks involved in a particular business, industry trends and legal and regulatory issues. Cash flows are normally reported using standard and reliable cash flow statements.

Strategies

Examine your cash flow in the context of your business plan. Some companies use a "wheel of competitive strategy," where the spokes list how the corporation achieves its objective, which is the hub. Some use the SWOT model, listing strengths, weaknesses, opportunities and threats. Still others examine cash flow with Porter’s Five Forces Model, which is most often used for evaluating competitive threats from new products or services, the bargaining power of buyers and suppliers, and rivalry among existing competitors.

Cash flow varies significantly between different business sectors, such as utilities...

About the Author

Keith Checkley FCIB, who once held management positions at Barclays’ Bank, is an associate director of Prebon Training Services. He has written ten business books including, Finance for Framing, Finance for Small Businesses, Lending and Cash is King - A Practical Guide to Strategic Cash Management the 1995 predecessor to this book.

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