CFOs Assuming New Leadership Role in Global Trade Management.BOSTON -- AberdeenGroup Report Benchmarks Improvements in Price/Earnings Ratios, Market Capitalization Market Capitalization A measure of a public company's size. Market capitalization is the total dollar value of all outstanding shares. It's calculated by multiplying the number of shares times the current market price. This term is often referred to as market cap. and Cash Flow According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. an AberdeenGroup report, a $1 billion company can free up $10 million to $40 million in cash by better controlling global trade processes, which directly impact price/earnings ratio and market capitalization. Two-thirds of companies polled say that improving global trade management is among their three most important initiatives. Moreover, 35% of companies report that chief financial officers (CFOs) are increasingly taking a leadership role in these initiatives. "The CFO's Agenda for Global Trade" benchmarks ways improvements in global sourcing are now determining a company's revenue growth, profitability and market success. "CFOs are in a unique position to lead the drive toward less risky and more effective trade processes," said Beth Enslow, vice president of enterprise research and report author. "They see the impact of business tradeoffs on strategic corporate objectives and financial performance. They also have corporate governance Corporate Governance The relationship between all the stakeholders in a company. This includes the shareholders, directors, and management of a company, as defined by the corporate charter, bylaws, formal policy, and rule of law. responsibilities to ensure fiscally responsible operations." As more of the business is tied up in global trade, working capital cycles become longer and harder to manage. More working capital is tied up in inventory to combat longer and more uncertain international lead times, proactive use of accounts payables balances degrade TO DEGRADE, DEGRADING. To, sink or lower a person in the estimation of the public. 2. As a man's character is of great importance to him, and it is his interest to retain the good opinion of all mankind, when he is a witness, he cannot be compelled to disclose , accounts receivables accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying become slower, and cash movement becomes more complex. Other key findings in the report include: --More than two-thirds of companies have current projects or future plans to enhance financial management systems and trade compliance technology. --Innovators are taking advantage of physical supply chain triggers to apply pre-, in-transit, or post-shipment inventory financing Inventory financing Used in the context of factoring and general finance to refer to loans to consumer product producers that use inventory as collateral. See also: Inventory loan. , discounting, or payables extensions. --Nearly three-quarters of companies plan to increase their use of trade services from financial institutions to lower transaction costs Transaction Costs Costs incurred when buying or selling securities. These include brokers' commissions and spreads (the difference between the price the dealer paid for a security and the price they can sell it). , smooth cash flow, and make it easier for international customers and suppliers to do business with them. To download To receive a file transmitted over a network. In any communications session, "download" means receive, and "upload" means send. The download/upload often implies a big/little scenario, in which data is being downloaded from the "big" server into the "little" user's computer. a complimentary copy of the report, follow this link: http://www.aberdeen.com/link/sponsor.asp?cid=2028 About AberdeenGroup, Inc. AberdeenGroup provides fact-based research and insights focused on the global, technology-driven value chain. Aberdeen's benchmarking, market and solution assessments, sales acceleration programs, and conferences support Global 5000 value chain and technology executives -- and the solution providers who serve them. For more information, visit www.aberdeen.com or call 617-723-7890. |
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