Cash management

Definition

Cash management is the process of collecting, managing, and investing a company's available cash in a way that balances liquidity and profitability. It involves monitoring cash flows to ensure that a company can meet its short-term obligations while maximizing its interest earnings or returns on any excess cash.

Related terms

Liquidity:

The ability of an asset to be converted into cash quickly without impacting its market price.

Cash Flow:

The total amount of money being transferred into and out of a business, especially as affecting liquidity.

Investment Strategy: A plan for allocating assets among various investment types to achieve specific financial goals, balancing risk against performance