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© 2011 Treasury Strategies, Inc. All rights reserved.
May 17, 2011
Treasury Metrics for High-Performance Treasury
Presented by: Laurie McCulley, Managing Director, CTP
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Objectives Drive Measurements
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What Defines Success in Treasury?
Increase firm
value
Reduce volatility
Improve cash flow
Reduce WACC
Manage risk
Reduce banking
cost
Reduce hedging
cost
Reduce interest expense
Reduce liquidity
risk
Corporate Level
Treasury Level
Functional Level
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What Are Your Objectives?
Optimize cash
Manage cash flow
Provide access to
capital markets
Maintain a banking structure
that supports business strategy
Manage financial
risk
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Many Ways to Measure
Flows Cash Flow
Forecast Variance
Ratios Avg.
Transaction Rate
Weighted Avg. Return
Stats Portfolio
Value
Stress Tests
Time To Complete
Cash Position
To Process Wires
Counts
Transaction Volume
# of Errors
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Sample KPIs: Analytic and Strategic
% Counterparty Limits used
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Sample KPIs: Operational
% Cash in Interest-Bearing
Investments
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Next Steps
• Ensure your treasury has defined its objectives • Institute meaningful key performance indicators across all functions • Incorporate these in policies and procedures • Measure success at all levels
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Questions?
Laurie McCulley Managing Director Treasury Strategies, Inc. [email protected] 407-644-6202
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