“If you are still using a cumbersome, error-prone spreadsheet that requires too much time spent on maintaining rather than focusing on the outputs, CashAnalytics is a step towards a 21st century treasury process”
John Cloherty
Group Treasurer, NCC Group
NCC Group is a global cyber and software resilience business operating across multiple sectors, geographies and technologies. NCC assesses, develops and manages cyber threats across an increasingly connected society. The company advises global technology, manufacturers, financial institutions, critical national infrastructure providers, retailers and governments on the best way to keep businesses, software and personal data safe.
What activities does CashAnalytics support in NCC?
1. Global Liquidity Management
John Cloherty, Group Treasurer NCC Group, and his team use the cash flow forecast from CashAnalytics to manage liquidity across the group and make sure every business unit is adequately funded.
“CashAnalytics is a key tool in NCC’s global liquidity management, providing transparency down to an individual cash transaction level of detail. This provides timely notice of local deficits so they can be funded promptly, as well as variance analysis to highlight key changes in cash flows.” said John when asked about the role CashAnalytics plays in managing liquidity, day-to-day.
2. Debt Covenant Compliance Forecasting
Headroom on NCC’s leverage covenants are closely monitored by the NCC Treasury team. CashAnalytics is a core input to this process as it provides the cash forecast used in turn to forecast covenants.
Commenting on this, John said “CashAnalytics is also a key tool in forecasting compliance with Leverage covenants under our borrowing facilities.”
Key Features of CashAnalytics used by NCC
Multi-business unit cash flow forecasting
Intercompany tracking
Multi-currency cash flow forecasting
Consolidation reporting
ERP integration for automated ledger unwind
Variance and accuracy reporting
What type of forecasting process does NCC run in CashAnalytics?
CashAnalytics collects and consolidates multi-currency cash forecasts from 50 business units across the NCC Group for the weekly reporting cycle.
The consolidated 13 week cash flow forecast produced by CashAnalytics is used to support a range of activities in NCC including group wide liquidity management, leverage covenant compliance forecasting and management reporting.
The direct cash flow forecast produced by CashAnalytics is also used as a check on the accuracy of the accounting based indirect cash flow forecast which is an output of the broader budgeting and planning process in NCC.
Process overview
- 13 week cash flow forecast
- Submitted by 50 business units
- Weekly reporting cycle
- Key reports used include variance and consolidation reports
- Supports liquidity management
- Covenant forecasting
Key benefits of CashAnalytics
- Significant time saving at head office and reporting units
- Detailed daily 13 week group wide cash visibility
- Forecast automation for business units using ledger unwind
- Greater certainty over period end debt covenant compliance
