Since CF matters so much, it’s only natural that managers of businesses do everything in their power to increase it. In the section below, let’s explore how operators of businesses can try to increase the flow of cash in a company. Below is an infographic that demonstrates how CF can be increased using different strategies.
Managers of business can increase CF using any of the levers listed above. The strategies for improving CF fall into one of three categories: revenue growth, operating margins, and capital efficiency. Each of those can then be broken down into higher volume, higher prices, lower cost of goods sold, lower SG&A, more efficient property plant & equipment (PP&E), and more efficient inventory management.