All Collections
Core cash target - benchmarking
Core cash target - benchmarking
Matt Fox avatar
Written by Matt Fox
Updated over a week ago

Core Cash Target: This metric is determined by calculating the amount of cash a business needs on hand to operate effectively without external financing. It's typically calculated based on operational expenses, including payroll, rent, utilities, and other regular costs, often factored for two specific number of months plus taxes set aside.

A strategy to Improve Core Cash Target is to Enhance Revenue Collection: Implement efficient billing and collection processes to reduce the time between issuing invoices and receiving payments.

Did this answer your question?