Treasurers face rising expectations from executive leadership as firms navigate geopolitical and macroeconomic challenges, adopt new digital business models, and deploy emerging new technologies. Yet, as treasurers deploy strategies to create value for their firms, they are challenged to justify their investments.
Our analysis shows that firms with top performing treasuries tend to have higher profitability, stronger expected growth, and higher market valuation. The opposite is true, empirically, for firms with lesser performing treasuries. This underscores the importance of treasury’s contribution to company performance.