Citi recently unveiled its latest study, "Treasury Leadership: Does it Matter?" indicating that companies fostering treasury teams as industry leaders experienced improved financial performance. The study highlights a correlation between top treasury performance and company profitability, according to the report provided by Citi.
Citi's analysis revealed that the top 40 performing treasuries, as identified in the study, may have contributed to an additional $44 billion in earnings over the past five years, emphasizing the potential financial impact of effective treasury management. This study highlights key factors that differentiate top-performing treasuries, emphasizing the significance of high performance in liquidity and working capital management, as well as technology adoption for automation and resilience, in delivering substantial value, according to the report provided by Citi.
“High-performing treasuries ensure efficient funding of working capital, proactively identify and mitigate financial risks, and deploy liquidity to fund the company's growth,” said Shahmir Khaliq, Citi Global head of Services, according to a press release by Citi. “Companies can use the learnings to leapfrog what can be a lengthy process of becoming treasury leaders. And by doing so, accelerate their ability to increase company returns.”
The report by Citi outlined that efficient funding of working capital, strategic deployment of liquidity for crucial needs, and proactive identification and mitigation of financial risks are key attributes of high-performing treasuries, showcasing their integral role in driving value for companies. Additionally, more effective treasuries leverage technology extensively, utilizing advanced systems from providers and banking services, according to the report provided by Citi.
“These results show that companies need to accelerate investments in treasury transformation,” said Stephen Randall, Citi Global head of Liquidity Management Services, according to a press release by Citi. “The good news is that the latest generation of technology-based financial services equips treasurers to automate, manage risk and use insights to support business growth and contribute to financial outperformance.”