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Working Capital Scorecard 2008 Companies have improved working capital management, but not by much.

Jason Karaian, CFO Europe Magazine
July 7, 2008

Increasing Working Capital With Facility Energy Risk Management

Increased facility energy costs are also reducing working capital. Most CFOs do not consider facility efficiency investments as an opportunity to increase cash flows. Replacing short payback hurdle rates used by energy managers with a more appropriate risk management approach provides investment analysis similar to Value at Risk (VaR). This strategy can typically increase cash flows by 30-40 percent of current energy costs.

A financial risk management approach to energy efficiency is described in the book "Energy Budgets at Risk (EBaR): A Risk Management Approach to Energy Purchase and Efficiency Choice" published by Wiley in April 2008. See energybudgetsatrisk.com for more info.

Jerry Jackson, Ph.D.
College of Architecture
Texas A&M University
jerryrjackson@tamu.edu

Posted by Jerry Jackson | Aug 14, 2008 11:20 AM ET