Key metrics in a treasury management system (TMS) revolve around liquidity, risk, and performance. Liquidity metrics include cash forecasts, which help in understanding future cash positions, and liquidity ratios that assess the ability to meet short-term obligations. Risk metrics involve interest rate risk and foreign exchange exposure, which are crucial for managing financial risk and hedging strategies. Performance metrics focus on investment returns and cost of capital, providing insights into the efficiency and profitability of treasury operations. Monitoring these metrics enables organizations to make informed decisions, optimize cash management, and maintain financial stability. Regularly tracking and analyzing these metrics can also aid in identifying trends and potential issues before they become critical.
Key Takeaway: Track liquidity, risk, and performance metrics for effective treasury management.