Cash and Working Capital

Rising sales are often treated as success; yet growth creates economic value only when it is backed by a sustainable business model, adequate profitability and the capacity to generate cash. This note assesses the growth–profitability trade-off for firms in Türkiye.

Cash pooling is a central treasury technique that manages scattered group liquidity together: it reduces idle cash, lowers external borrowing and, through physical or notional models, improves the group’s interest outcome.

Rising sales are often treated as a success indicator; in financial management, however, turnover and cash are not the same thing, and growth that cannot be financed can produce a serious liquidity squeeze.

A thirteen-week rolling cash budget shows, week by week over roughly the next three months, expected cash inflows and outflows and when financing needs may arise. It is a short-term liquidity management tool.

Ageing of receivables classifies trade receivables by due date and days overdue. What matters is not the total balance, but how much is overdue and carries collection risk.

Cash squeezes are not driven by tax dates alone; interest rates, banks’ appetite to lend, the exchange rate, inventory costs, collection periods, and sales tempo matter together. What helps is tracking which market conditions widen the cash gap.