Kyriba Study Reveals Corporate Liquidity Surges to $3.5 Trillion, Marking an Annual Rise of $180 Billion

Kyriba, renowned for its expertise in enhancing liquidity performance globally, has introduced the pioneering Corporate Liquidity Performance Report. The report unveils a significant surge in corporate liquidity, reaching nearly $3.5 trillion by the close of 2023, marking a notable year-over-year increase of $180 billion compared to 2022. It sheds light on the ongoing economic uncertainty and market volatility, indicating a trend of heightened liquidity among public US companies with revenues surpassing $1.0 billion over the past four quarters.

Melissa Di Donato, Chair & CEO of Kyriba, emphasized, “CFOs need to demonstrate resilience and agility to changing market conditions. Yet finance teams are stuck in ‘Liquidity Gridlock’ – antiquated spreadsheets, fragmented data, and disconnected systems. This report highlights the significance of dependable, timely liquidity insights and demonstrates how our liquidity performance platform plays a pivotal role in improving our customers’ access to liquidity.”

The report delves into the drivers of robust financial performance and assesses corporates’ access to Short-Term Liquidity (STL), defined as liquidity deployable at short notice. Utilizing cash equivalents, short-term investments, available credit, and deducting the current portion of long-term debt and net interest expense, Kyriba analyzed quarterly data from over 1,000 US corporations with annual revenues exceeding $1 billion USD in 2023, excluding banking institutions.

Key findings from the April 2024 Corporate Liquidity Performance Report include:

  • Corporate Liquidity for US companies stood at $3.46 trillion by the end of 2023, witnessing a year-over-year increase of $180 billion.
  • The top three industries with the highest liquidity access in 2023 were Non-Bank Financials, Information Technology, and Real Estate Services.
  • The Kyriba Short-Term Liquidity (STL) Index, a measure of variability normalized by revenue size, experienced a 5.0% quarter-over-quarter and 5.6% year-over-year increase.
  • Large corporations (revenue over $50 billion) exhibited lower and more stable STL Index ratios, while smaller firms ($1-5 billion revenue) were more responsive to market condition changes.

Additionally, Kyriba evaluated its customers within the study to gauge their liquidity access against peers, revealing:

  • Companies leveraging Kyriba surpassed the Short-Term Liquidity Index by an average of 6%, equating to $12 million per $1 billion in annual revenue.
  • Kyriba customers demonstrated superior performance in key sectors such as non-bank Financials ($79 million higher per $1 billion revenue), Information Technology ($131 million higher per $1 billion revenue), Industrials ($83 million higher), and Communications ($60 million higher per $1 billion revenue).

Kyriba attributes these findings to enhanced capabilities in connecting, protecting, forecasting, and optimizing liquidity facilitated by its Liquidity Performance Platform.

For access to Kyriba’s comprehensive Corporate Liquidity Report, please visit: Kyriba Corporate Liquidity Performance Report.

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