Cash is King

After the unprecedented financial crisis Lehman shock on September 15, 2008 and the Great East Japan Earthquake on March 11, 2011, WHO has announced the new coronavirus was equivalent to a pandemic (a global epidemic) on March 11, 2020.

The era of VUCA (since the 2010s)

VUCA is an acronym made from Volatility, Uncertainty, Complexity, Ambiguity, and represents the modern chaotic economic environment. In other words, it means "unpredictable state". In addition, global warming and environmental issues are the most important and urgent issues for ESG and SDGs.

Under these circumstances, what is most needed is the ability to respond to change by making use of the wisdom from past failed experiences and successful experiences.

In order to build a corporate structure that can respond to changes, it is necessary to manage the points of change with a narrower pitch than target management.

To that end, it is an urgent task to align common operation cycles on a weekly basis, chain conventional management indicators (financial indicators and non-financial indicators), and carry out cockpit management with the idea of a balanced scorecard.

This book explains CCC by comparing it with Japan, the US, and Europe using the latest 3 yeras (12 quarters) financial results figures (end of March 2020) that can be grasped at the time of publication. This is a must-have book for business owners as a guide to improving asset efficiency.

Chapter 1

Now, why cash management is paying attention?　

(1) Profit is an opinion, Cash is a fact

(2) Increasing surplus bankruptcy

(3) Increasing Accounting Fraud

Chapter 2

Management Accounting and Financial Accounting

Chapter 3

CCC positioning and comparison between Japan and the United States

(1) Key financial indicators

(2) Positioning of CCC

(3) CCC comparison between Japan and US

(4) Sporting goods industry in US, Europe and Japan

(5) Six major chemical companies in Japan

(6) Electronic components Industry in Japan

(7) Pharmaceutical Industry in Japan

(8) International comparison by industry

Chapter 4

Relationship between PSI management and CCC

(1) The basic knowledge of PSI

(2) What is PSI management?

(3) Correlation between PSI and CCC (cashing speed)

(4) Notes on PSI management

Chapter 5

Measures to Improve CCC

(1) The case of Nidec Motor

(2) The case of Shionogi

(3) The case of HP, Inventory driven costs (IDC)

(4) Japanese companies pursuing Inventory freshness / time-axis management

(5) Japanese companies pursuing weekly operation

(6) Lehman shock (2008) through 2012 (after 311 Earthquake and Thai Flood)

Chapter 6

Management Methods, Promotion Structure and Required Systems and its usage

(1) Cash cycle and lead time

(2) Stock out rate

(3) Channel inventory turns

(4) Inventory responsibility, Inventory Dollar Control and Unit Control

(5) Inventory Diagnosis Clinic

(6) Blind spots of accounts receivable management

(7) Effective management methods

(8) Effective system and its usage

Chapter 7

Key issues in Japanese commercial practices and accounting system

(1) Month-end closing and next month-end payment　　　

(2) Monthly accounting system