Is Cash Crunch Fear A Reality As We Battle Coronavirus?

  • Jun 26, 2020 AEST
  • Team Kalkine

A famous proverb states- “Revenue is vanity, profit is sanity, and cash is a reality.”

Irrespective of their size and offerings, majority businesses across the globe believe that knowing far ahead of time whether they are heading into a cash crunch, enables them to make better decisions, also ahead of time. Maybe this is why keeping projections updated and efficiently managing cash flow is of paramount importance to all businesses.

Of late, the coronavirus pandemic has endangered liquidity situation of not only small and medium enterprise firms but large listed firms too. Though silver linings have appeared with the lifting of lockdowns, easing of restrictions, phased reopening of economies, and hopes for a vaccine in as soon as possible, there is no denying the fact that businesses have been cash-constrained and fear of a global cash crunch looms over us.

Fear is a normal part of life. But what makes it a cause of concern is the fact that it can pop up often when one least expects it. Once this happens, the only option left with us is to accept the harsh truth, brace up and take action to weather the storm.

The COVID-19 pandemic has brought along a number of such fears - human health is at high risk, economic growth seems to falter worldwide, businesses and markets have suffered amid lockdowns and quarantines, all while the field of medical science continues to be on the hunt for a vaccine.

Another fear that continues to give sleepless nights and agitated mornings to business owners is that of a cash crunch - a state when a business organisation does not have enough cash to operate effectively or in a typical manner.

#Covid19 #Revenue #Stockmarkets #Kalkine


The video has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. The above video is NOT a solicitation or recommendation to buy, sell or hold the stock of the company (or companies) under discussion. Kalkine does not in any way endorse or recommend individuals, products or services that may be discussed on this site.


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