Strategic metrics in treasury engine management go beyond traditional financial indicators and include metrics that align with the company’s strategic goals. Cash Conversion Cycle (CCC) is a vital metric that measures the time taken to convert inventory investments into cash flows. Liquidity Ratios, such as the current ratio and quick ratio, help assess the company’s ability to meet short-term liabilities. Value at Risk (VaR) is another critical metric, quantifying the potential loss in value of an asset or portfolio over a defined period. Tracking these metrics helps in making informed decisions that align with broader financial strategies and risk management policies.
Key Takeaway: Strategic metrics like CCC, liquidity ratios, and VaR align treasury operations with company goals.