Chatter Central The importance of working capital
ECLUB NEWS |
A recent two-part series in this newsletter, titled The five greatest risks to financial security stressed the importance of working capital to a viable enterprise.
Readers can imagine the delight felt by the McGladrey contributors when this same theme was emphasized recently in a blog posted to The Wall Street Journal website as part of the publication’s CFO Journal feature.
In this month’s review of online chatter pertinent to the private clubs industry, attention is turned to this posting in which News Editor James Willhite shared that CFOs at mid-sized firms expect that growth capital over the next two years to be realized not from debt or equity sources—or initiation fees for equity in private club industry equivalent—but from cash generated by ongoing operations.
As the average revenue for private clubs served by McGladrey is around $10 million, the fact that the 275 finance executives surveyed represented organizations with revenues between $4 million and $2 billion makes this finding especially insightful.
Read CFOs at Mid-Size Firms Target Working-Capital Improvements: Survey, posted by James Willhite on March 21, 2013.