Overcoming Global Liquidity Challenges with Kyriba

In order to remain resilient in the face of shifting economic realities, companies must have accurate, real-time insights into their liquidity. Advanced findings from SAPinsider’s SAP S/4HANA Finance report found that nearly two-thirds (66%) of respondents listed end-to-end cash management processing and visibility as either important or very important.

Yet all too often, companies still rely on outdated methods like spreadsheets and siloed data practices in their cash management workflows. Additionally, not all liquidity is equally helpful. Organizations must have a clear understanding of where their cash is and how they can best manage it in numerous situations.

Analyzing Global Liquidity

To give a further look into the worldwide liquidity crunch, Kyriba released its Corporate Liquidity Performance Report. The report evaluated worldwide corporate liquidity health of U.S. corporations. It found that corporate liquidity health soared to almost $3.5 trillion as of the end of 2023. This represented a year-over-year increase of $180 billion compared.

The report also dug into the liquidity practices of leading organizations to determine how companies manage their money. For instance, public companies with annual revenues of over $1 billion have boosted liquidity over the past year, indicating that economic volatility is still a major factor in decision-making.

“CFOs need to demonstrate resilience and agility to changing market conditions. Yet finance teams are stuck in ‘Liquidity Gridlock’ – antiquated spreadsheets, fragmented data, and disconnected systems. This report highlights the significance of dependable, timely liquidity insights and demonstrates how our liquidity performance platform plays a pivotal role in improving our customers’ access to liquidity,” said Melissa Di Donato, Chair & CEO of Kyriba.

Short-Term Liquidity

In the report, Kyriba also highlighted the importance of “Short-Term Liquidity,” which boils down to the cash that companies can deploy rapidly. This consists of cash equivalents, short-term investments and available credit, minus the current portion of long-term debt and net interest expense.

Larger corporations (those with revenues of $50 billion or more) tended to have more stable rates of Short-Term Liquidity, while other smaller organizations tended to fluctuate more significantly.

Kyriba also noted that its customers were able to exceed the typical Short-Term Liquidity by 6%, particularly in key industries like non-bank financials, IT, industrials, and more. Organizations using Kyriba’s Liquidity Performance Platform are able to leverage improved forecasting and optimization capabilities to prepare for uncertainty.

The financial future is always going to have a level of uncertainty, but organizations should act proactively to ensure that they can meet whatever challenges come their way. All organizations have some liquidity, but having partners like Kyriba that can break down silos and improve financial workflows offers a key advantage.