The Gist of the Treasury Function

Generally speaking, there are two main facets of cash management as a functional concept. For the lack of better terminology, let me call them macromanagement and micromanagement. They are equally important and cannot be isolated from each other—successful macromanagement guarantees more efficient micromanagement.

Macromanaging of treasury deals with an entity's balance sheet liquidity. It targets the company's working capital (defined as a difference between current assets and current liabilities) and consists of efforts designed to increase this metric by building cash reserves. There is a certain dissimilarity ...

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