It is interesting to note that in this financial crisis very many companies are very well capitalized. Many are more concerned with their investment portfolios than available credit facilities.
My experience is that generally speaking the Earnings KPI is more preferred than the Cash KPI for most corporates. It determines how the set the goals, communicate to shareholders and set the important bonus targets. That is strange and will probably change. As everyone knows the Earnings can easily be manipulated and is hard to get to show the real state of the company. Cash KPI on the other hand often gives a truer picture of the performance. Wonder if this will change now? And if it does the bottom-up cash forecasting will come in fashion. There is only a small number of corporate doing that successfully today.
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