Kyriba report: boosts in corporate liquidity highlight the need for agility and resilience in CFOs

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A first-of-its-kind report, unveiled recently by specialists in liquidity performance, Kyriba, found corporate liquidity health increased to nearly $3.5tn by the close of 2023, an overall year-on-year increase of $180bn compared to 2022. Data for Kyriba’s Corporate Liquidity Performance Report was gathered from over 1000 US corporations that had revenues of more than $1bn in 2023, excluding banks.

Total public liquidity of those US companies with over $1bn in revenue has trended higher over the last four quarters, which the report says is evidence of ongoing economic uncertainty and a signal for how volatile the market still is.

The reports findings were gathered by Kyriba through sourcing cash equivalents, short-term investments and available credit. The current portion of long-term debt and net interest expense was deducted to provide the results Kyriba needed.

The report also shared the top three industries that had greater access to liquidity in 2023: non-bank financials, information tech and real estate services. Kyriba’s Short-Term Liquidity (STL) Index, a way to measure variability normalized by revenue size, increased by five percent quarter-over-quarter, with an overall increase of 5.6 percent year-over-year.

Larger corporations with over $50bn in revenue were shown to have a more stable STL Index ratio over smaller firms (between $1-5bn in revenue), who comparatively could respond better to any changes in market conditions.

Kyriba’s report also assessed its own customers to compare their liquidity access against their peers. Firms that utilized Kyriba’s solutions outpaced the STL Index by an average of six percent, which translates to $12m per $1bn in annual revenue. Kyriba users were $79m higher per $1bn in revenue for non-bank financials, $131m higher per $1bn in revenue for information technology and $60m higher per $1bn in revenue for communications.

Kyriba says the improved capabilities provided by its Liquidity Performance Platform, an interconnected network, enabled the improved findings from its customers.

Melissa Di Donato, chair and CEO, Kyriba, focused on how finance teams are stuck in a ‘Liquidity Gridlock’ by continuing to use “antiquated spreadsheets, fragmented data and disconnected systems,” and how CFOs now needed to “demonstrate resilience and agility to changing market conditions.”

“This report,” Di Donato explained, “highlights the significance of dependable, timely liquidity insights and demonstrates how our Liquidity Performance Platform plays a pivotal role in improving our customers’ access to liquidity.”