1. What is liquidity management?
Enterprise liquidity management refers to the active management of various current assets and current liabilities in order to ensure the ability to pay funds and improve the efficiency of capital use. It mainly includes the following.
Liquidity requirement** The amount of capital required by a company for a certain period of time in the future.
Cash Management - Optimize cash flow and determine the amount of cash reserves.
Accounts Receivable Management - Accelerates accounts receivable and reduces the amount of time it takes to tie up your business's capital.
Short-term investment management - Earn a certain return on investment through moderate short-term investments.
Debt Structure Management - Optimize the ratio of short- to long-term debt and reduce financing costs.
Liquidity Risk Management - Assess and protect against possible liquidity risks.
Liquidity index monitoring - Establish a liquidity analysis and evaluation system to monitor liquidity indicators.
2. Why should enterprises carry out liquidity management?
On January 5, 2022, the State-owned Assets Supervision and Administration Commission (SASAC) issued the "Opinions on Promoting Enterprises to Accelerate the Construction of the Treasury System and Further Strengthen Fund Management", which regarded liquidity risk as one of the four types of risks that enterprises should focus on preventing, and elevated corporate liquidity management to the core issue of treasury management.
Good liquidity management can enable enterprises to "eliminate peaks and valleys" in the foreseeable capital cycle, carry out daily operations with a relatively stable income and expenditure curve, and ensure the safety and stability of funds.
The core logic of traditional liquidity management is to carry out around the capital plan, and the future capital surplus is deduced through the time sequence of the plan details. This method, although it can avoid the risk of centralized payment of funds to a certain extent, can avoid the problem of long-term idle funds. However, it cannot penetrate the overall capital structure of the enterprise, analyze the rationality of the allocation of assets and liabilities, and cannot actively intervene in long-term liquidity from the perspective of management.
3. How to manage liquidity.
In order to solve many shortcomings in traditional liquidity management, Yonyou has launched a liquidity management model that focuses on the details of the capital plan of the member unit and the operation business of the capital operation entity, combined with the control of financial indicators.
Determine liquidity management metrics.
Combined with the business format of the enterprise and its own capital operation entity (group finance department or finance company), the core financial indicators that need to be monitored, such as current ratio, deposit-loan ratio, EBIT, etc. Meantime. Determine reasonable thresholds for each financial indicator based on historical operating data. This is used as a parameter comparison for liquidity monitoring.
Data classification. Analyze the financial indicators of concern, determine and calculate the various influencing factors of the corresponding indicators, classify the input data, such as the details of the capital plan, the capital operation business ledger, etc., and compare them to the various influencing factors of the index calculation.
Taking the current ratio as an example, if the financial company of the enterprise is the main body of capital operation, the current ratio = current assets and current liabilities. In the self-operated business of a financial company, the ** investment, interbank certificates of deposit that mature in a short period of time, and time deposits that can be realized at any time are included in the current assets of the day. The interbank lending and deposit absorption of the financial company's proprietary business are included in the current liabilities on that day.
Calculate the deviation of metrics and the scale of business adjustment.
Based on the details of the member company's capital plan and the operating business records of the fund operation entity, the expected value of each future financial indicator is calculated, and the deviation degree is confirmed by comparing it with the preset threshold of the corresponding index. Based on this, the scale of change of each impact factor required to meet the requirements of financial indicators is estimated.
Taking the current ratio as an example, assuming that the current ratio calculated based on the plan and proprietary business data deviates from the specified threshold at -3%, if the current assets remain unchanged, the scale of current liabilities that need to be adjusted = the current total current liabilities - the current total current assets are 3%.
Fourth, the calculation adjustment.
The adjustment scale of each impact factor is calculated according to the index, combined with the preset data classification, and the adjustment simulation of the capital plan details and capital operation business of the member units is carried out in a specific tool, and the real-time calculation is carried out to confirm the feasibility of the adjustment content.
Proactive intervention. Through the calculation and simulation of the system tools, the details of the capital plan and the adjustment target of the capital operation business are confirmed, and the corresponding units are required to adjust the capital plan according to the requirements through online or offline channels, and guide the functional departments to supplement and allocate the capital operation business.
The value of liquidity management.
As the core issue of treasury management, it is a major innovation to build a treasury risk prevention and control system based on the new idea of liquidity management of the plan details of member units and the data on the capital operation side.
A central enterprise at a certain level has used this idea to carry out practical practice and achieved remarkable management results.
The central enterprise takes the details of the capital plan of the member units and the self-operated business of the financial company as the management starting point, takes the liquidity ratio as the core management index, and accurately calculates the indicators from the two aspects of ** and actual through the built-in model. By comparing the calculation results with the configured thresholds, the current overall liquidity of the group is analyzed. And give targeted liquidity response strategies or asset allocation suggestions. According to the conclusions given by the system model, the liquidity management post user of the financial company puts forward suggestions for the adjustment of the capital plan on the side of the member units, and puts forward specific suggestions for the operation of funds on the side of the functional departments of the group. After the actual implementation of all liquidity adjustment suggestions, regression tests can be carried out through the model to confirm the effectiveness of the adjustment and achieve the final closed loop of the business.
Combined with the liquidity management tool of financial index control, it can not only help enterprises to arrange positions from the perspective of daily capital surplus, but also realize the penetration and analysis of capital structure through the analysis of the details of the capital plan of member units and the business data of capital operation, help enterprises formulate reasonable liquidity management strategies, and provide an effective guarantee for the sustainable and healthy development of enterprises.
Article**: China Weekly.com.