Treasury Margin


What is the Treasury margin ?


This indicator is a KPI that measures in absolute terms the value of the liquidity net of current liabilities at a given time "as is" by using the structure of capital reported in the balance sheet of an enterprise. On the other hands, it express the company's financial ability to meet short-term commitments (current liabilities) with Cash available, Cash equivalents and current receivables.

The value of the treasuty margin is given by the difference between the total value of the liquidity (immediate liquidity and deferred liquidity) and the value of the maturing financial commitments that must be honored by the company within the next 12 months (current liabilities).




A positive Treasury Margin value shows that the company operates with a short-term financial structure that cover short-term commitments maturing in the next 12 months.

Although considered its value by using the company's capital structure, it is an indicator used for deep structural financial analysis of the company and it is normally used by Treasury Managers and Chief Financial Officier (CFO) whose main activity is in fact managing organization’s cash, overseeing cash transactions, ensuring adequate liquidity and generating reports on cash operations.

In order to avoid shortage of cash available, the Treasury Manager or CFO, shall determining how much cash is available for use and forecasting both short and long term cash levels based on a large amount of variables related to different types of risks like: business risk, financial and credit risk, environmental risks, market risks, purchaising power risks just to name few. 

UNIGIRO is a regtech facilitator. Its dynamic and extensive Key Performance Indicators (KPI) boost real-time monitoring of financial sustainability upgrading risk management regtech tools and corporate social governance.

MONITORING ENTERPRISE CREDIT RISK: the first Smart XBRL Data Analytics Engine Toolkit for Financial Risk Analysis that facilitate Creditors and Investors in monitoring company's creditworthiness and financial sustainability

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