Build your professional network on facebook via our app Go to app
 
 
 

Is Cash really the King?

Created by : Suchi smita, HR Executive, Ropra Infosolution  | 08 10 2010 08:20:10 +0000
Industry : Human Resources (HR) ConsultingFunctional Area : Organizational Development(People Management)
Keywords : cost cutting pink slips organizational structure cost cutting strategies indian organizations going lean
Activity:  456 views;  last activity : 04 15 2011 20:50:39 +0000

Lately the discussion in boardrooms across the globe is not mergers and acquisitions. It’s not the bottom-line either. That’s because sales and profitability do not count in a liquidity crunch. The only thing that matters is how much cash you have on the table. Let’s face it. In the current scenario people are saying ‘Cash is king’.

http://blog.uspsoig.gov/wp-content/uploads/2009/06/cost-cutting1.jpg

Cost cutting is the mantra. From pooling of vehicles to switching off fans and lights when not required and to slashing perquisites, everything is in. Every rupee saved counts. Some IT and ITes companies who were doling out fancy perquisites to retain their young crowd a year ago have now even done away even with the toilet paper.

So, Is Cash really the king at the moment? And is it the right strategy that they are coming up with? Share  your views on this people....

  
 Refer 741
Share
 
 
  Rate : 
 
 
Yes Vs No
32
 
 
 
 
10
19
6
Support   Support
Top Argument
3
0

I think the companies are doing the right thing at the moment by cutting costs but for god's sake they should not be mean like there is no toilet paper. They can do much better by doing these things in a smarter way by shifting their focus on "Here & now".  Around this time two years back, companies were making blueprints for aggressive acquisitions and expansions. Nobody even raised an eyebrow while planning how to achieve the elusive 200% growth. Wake up, wake up, times have changed. Forget 200% growth,  if they can achieve 50% of their sales last year, it’s a worthy achievement. The sooner they realize this; it will do a world of good for their business. There’s no point in focusing on building wealth. Long-term goals can wait. It is a question of survival. It’s a war on cost. And when it’s war, they need to win the quick battles that can improve their liquidity in the next month and the coming quarter than anything else at the moment.
By Suchi smita, HR Executive, Ropra Infosolution  08 10 2010 08:20:10 +0000
 
Top Argument
3
0

Only to an extent I agree that "cash is king" but not completely.

The reason for this is that if you are sitting on a huge pile of cash and don't utilize it for growth opportunities then the value of money in hand degrades. Say if you have say 1000 rupees with you and you keep the thousand rupees for 5 years then the effective value of your 1000 rupees becomes only (say) 80 rupees.

The point is that, though we should be realistic in growth targets (200% growth huhhhh...), we should not be over-conservative and stop investing our money in new ventures. Companies line Apple Inc, Infosys etc aren't doing good to themselves by keeping most of their money in liquid state as I strongly feel that they are definitely missing out on growth Inorganic opportunities.

Yes their has to be a balance b/w 'cash in hand' and having assets with you and a good organization would always have the tools calibrate this, So "cash is king" isn't a very smart thing to do I feel.

Thank you
By Vinay Mudgil, Sr. Application Developer, Computer Sciences Corporation  08 10 2010 11:38:30 +0000
0
0
Money can’t buy happiness but it’s more comfortable to cry in a Mercedes than on a cycle.
By Parth Pandya, Team Leader- IT Recruitments, Akraya Inc  | 04 15 2011 20:50:38 +0000
0
0
At present money demands you..with out money there is no person that not even know you...... in my opinion (money+money=LIFE) i know this is possible upto some extent not for entire life
By Ashok gajapathi raju, Pursuing Graduation student, AITS  | 04 15 2011 17:24:41 +0000
0
0
Porul illaarkku ivvulagillai. arul illaarkku avvulagillai is an ancient saying. means this world doesnt belong to people who are pennyless and the heaven doesnt open to people who havent won the grace of the divine.
By S.SUBASH , General Manager - Realty Promotion  | 04 15 2011 13:09:52 +0000
0
0
its nice..now money can change anything, and can make anything.Cash can made by people in past but now people can made by money...but in life 40% of people need money,60% people live for money.
By Rajamahanti Manoj Kumar, Sr.Officer Commercial , MDL Corporation,U.S.A  | 04 15 2011 12:22:38 +0000
0
0
yes ,definitly cash is king because every decision ulimatly affect the cash. why these financial crisis arises ?? because of less money or more money. if u have money you are have a thousands of doors but if no money will difficult to find a single window.
By Vinod kumar, MBA (Finance) student, Punjab College of Technical Education  | 08 13 2010 12:06:53 +0000
0
0

I completely support the view that cash is the kin g in any business.
By Dr.G.S.Rama Rao, Freelancer  | 08 13 2010 11:32:42 +0000
0
0

I support for yes & want to say without any hesitation that 'Cash is the King'.
By SHRIKANT MANOHAR DANKE, Project Manager, Phadnis Infrastructur Ltd  | 08 12 2010 06:24:37 +0000
0
0
I just want to give one quote supporting my view....MONEY IS NOT EVERYTHING......,BUT DON'T THINK THIS NONSENSE BEFORE U HAVE LOTS OF MONEY.
By Padmalochan Gogoi, MBA/PGDM student, CMS,Dibrugarh University  | 08 12 2010 06:02:00 +0000
0
0

I accept Ms suchi. Cash is the king. All organisations weighed for its profits after tax in cash, book values in cash, share worth in cash, assets in cash. We approach them for better salary in cash,-yes.  In USSR of seventies, the govt. gave the people all basic needs. But they are not given salary. What happened? The policy soon made them bored and they need himalayas to achieve. Only targets that are attractive, then the same is life! Otherwise, we are like dead fishes which will go on the river as it goes everywhere.


By Venugopal K, AM ( Lean tools), SPB Limited  | 08 11 2010 16:42:33 +0000
1
0
cash is definately the king until you know the what you will be doing with it
By Omkar Nandi, Business Analyst Merchandise planning TARGET  | 08 11 2010 12:09:26 +0000
1
0
cash is everything without cash u don't do anything even drinking water
By Pallavi Suresh Narkhede, B.E.COMP. student, K.K.W.I.E.E.R. nashik.  | 08 11 2010 11:53:15 +0000
0
0
you may have properties worth crores. but what determines your status is the cash flow and liquidity of cash.
By S.SUBASH , General Manager - Realty Promotion  | 08 11 2010 10:24:31 +0000
0
0
yes cash is the real king...some person said that health,food,shelter sex sleep are more imp...if cash is not there with you then how you will get all those things??? cash is important..for personal prospect as well as for life and business.. the end word is cash..if cash is available then future is there with you otherwise nothing..
By sudipta saha, Consultant, SC analytics pvt ltd.  | 08 11 2010 06:33:52 +0000
1
0

Yes.Cash is the real king in business."CASH IS KING"is an expression sometimes used in analyzing businesses or investment portfolios. It may refer to the importance of cash flow in the overall fiscal health of a business. For investors it may also describe times when it is advantageous to have a large percentage of cash or short-term debt instruments available either due to falling financial markets or due to the availability of investment opportunities.
By Teena A, Senior Assistant, Confidential  | 08 11 2010 04:50:44 +0000
1
0
Yes cash is required where it is to be given/taken in physical form. Like small buying/selling. But there are various other ways or means of meeting monetary requirements. But in any case liquidity is a must.
By Shashi Kumar U, Manager accounts & commercial, Mazda Concrete Products Pvt Ltd  | 08 11 2010 04:15:12 +0000
0
0

YES, CASH IS ALWAYS THE KING...
By Bharti Verma, Team Leader-QA/QC, INETZEN SERVICES  | 08 11 2010 03:22:02 +0000
0
0

Yes, no more if and buts in it.
By Diwakar Tiwari, Sr. Manager, THE Arvind LTD  | 08 10 2010 10:34:03 +0000
1
0

Yes the cash is always the king.  It is the basic point in finance.  Cash crunch is the only the cause for the debacle of major companies in the recent past.  There always some limitation for credit transactions.  When u cross the limitation, u need to face the consequences.  Liquidity always matters.
By Srinivas suravajhala, Asst. Manager.  | 08 10 2010 08:37:46 +0000
0
0

Cash is not King but king manages the cash
By George Varghese, Proprietor, Jecyees  | 08 18 2010 03:15:45 +0000
0
0

Money is a most important mediator and not a king. Have some money to live on happily with members of family and friends after need based budgetting. Excess money will cause you tension, insecurity of keeping it and sleepless nights.  I know people waking up in the midnight thinking about the money he has. Richness can bring you a place in the society provided you are ready to spend for others also.   You cannot also be a king just because you are very rich.
By Augustine J,Correya, Admin/Facilities Manager, Con-Core Engineering Company  | 08 17 2010 23:42:54 +0000
0
0

Hi everyone, I think in this debate most of us have not understood the concept very well. Please understand the concept and debate. Here we are debating about either the ready cash in hand is the king of business or investments made in business to grow money is the the king? But here few argued like "our health, food, water is more important than money" & one argued like "Money is not everything....., but don't think this before you have lots of money". Here we are not debating between money & life, but debating between liquidity state of cash & investments.
By Arun Kumar K, Security/ Equity Research Analyst, Thomson Reuters  | 08 12 2010 07:16:54 +0000
0
0

Natural properties, health, food, water, shelter, sex, sleep are more imp
By Ghadge , Freelancer, Asset Management  | 08 11 2010 04:20:31 +0000
2
0

Hi Viany Mudgil, I agree with you. Cash is the king upto a certain extent. There are many smarter ways to manage cash. If we make the proper balance between cash & investments, then situations like liquidity crunch will not arise. We have to keep adequate reserves of cash & short term investments which can be liquidated as and when we want by keeping in our mind the debts & other commitments.
By Arun Kumar K, Security/ Equity Research Analyst, Thomson Reuters  | 08 11 2010 03:01:39 +0000
Argue for "Yes"
Argue for "No"
 Found the debate "Is Cash really the King?"  interesting ?  Suggest to your connections and communities  
Leading HR Consulting specialists in India
Leading HR Consulting specialists in India
Viewers also viewed
What do you think Its New Generation Goverment or its King's Sons Goverment. Like Every Youth is...
 
70 referals 3 arguments, 201 views
Recently we are hearing a lot about cash for vote. What makes people accept this money though...
 
1664 referals 14 votes, 526 views
Today many organizations have work policy like work from home for atleast twice in week, one of...
 
987 referals 126 arguments, 1790 views
more...  
Recent Knowledge (4)
WE HAD A GOOD NUMBER OF INVENTORS WITH GREATER VISION ABOUT THE SOCIETY. INVENTORS HERE NEED NOT...
 
2 referals 2 arguments, 97 views
These days as I switch on the tv or radio or look at a hoarding I do feel that power of ads I...
 
3004 referals 23 arguments, 482 views
MNC's should take in more freshers vs Do not take freshers
 
1 referals 2 arguments, 161 views
more...  
Sponsored Jobs
More From Author
Shilpa Majithia (name changed on request), a banking professional, recently got an offer from one of the leading private sector banks in India. However, the mid-level professional declined the offer, as the 20-22% hike offered by the bank was not...
I understand your concern as a student.. But they are doing this and doing this since years so there has to be some reason.. If a person knows nothing about the field why will he get selected.. There are companies who hire non-it candidates on their...
Knowledge is power but experience also gives you knowledge. So, I believe that experience is much important than bookish knowledge.
more...  
  • Popular Knowledge
  •  
  •  
  • Popular Jobs
  •