search query: @author Mullins, J. W. / total: 2
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| Author: | Churchill, N. C. Mullins, J. W. |
| Title: | How Fast Can Your Company Afford to Grow? |
| Journal: | Harvard Business Review
2001 : MAY, VOL. 79:5, p. 135-149 |
| Index terms: | GROWTH CASH FLOW COMPANIES |
| Language: | eng |
| Abstract: | The authors offer a framework to help identify and manage the level of growth that a company's cash flow can support. They present a formula to calculate an organization's self- financeable growth (SFG) rate, taking into account three critical factors: a company's operating cash cycle - the amount of time the company's money is tied up in inventory and other current assets before customers pay for goods and services; the amount of cash needed to finance each dollar of sales; and the amount of cash generated by each dollar of sales. The authors offer a detailed hypothetical example that carefully considers these three factors; they then illustrate how a company can influence its SFG rate by carefully managing some combination of those factors - that is, some mix of speeding cash flow, reducing costs, and raising prices. |
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