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Revving up the working capital cycle

IF YOU ASK ROB JOSSART ABOUT THE cheapest and best source of cash for a business, he won't name banks or investors.

The right answer, he'll tell you, is the efficient management of the working capital cycle.

You could think of it as keeping the leakage out of a company's financial vascular system by paying close attention to its components, namely inventory, receivables, payables, and cash.

Jossart puts that view into practice as CFO of Martin Petersen Co. Inc., an 86-year-old mechanical contracting firm with 280 employees, headquartered in Kenosha. To evaluate how well current accounts are working, he consults regularly with Peter Sinsky, a partner in the Kenosha CPA office of Clifton ...

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