COVID-19: How to think about liquidity concerns

If you’re unsure about how COVID-19 might impact liquidity, you're not alone. In response to the COVID-19 crisis, this podcast is the next episode in a series that will address questions surrounding the financial impact. Heather Horn is joined by PwC’s business recovery service specialist, Steve Fleming, to help think through the cash flow challenges that companies face during times of crisis.

Topics include:0:35 - Managing liquidity in a time of crisis. Managing liquidity in a crisis comes with unique challenges. Steve compares how companies have historically thought about liquidity to what has changed as a result of the COVID-19 environment.1:40 - The role of the controller's department. Addressing liquidity concerns is a team effort. Steve discusses the planning and coordination needed across the finance and accounting departments.3:40 - First steps. Know your numbers and plan for the worst. Steve highlights the importance of acting swiftly and establishing a liquidity runway.5:11 - Contingency planning. After a company assesses its needs, what are the next steps to consider? Steve walks through the operational levers available to companies in order to protect their position.11:21 - Managing stakeholders. Companies need to effectively communicate their plans related to liquidity to their various stakeholders—including key suppliers and customers. Steve outlines what should be considered in an effective communication strategy.

Steven Fleming is a  PwC turnaround & restructuring leader helping clients in a variety of areas, including: strategic planning, complex debt restructurings, cash flow and working capital management, identification of liquidity enhancing activities and cost savings initiatives. He has over 22 years of experience assisting public and private clients in a range of industries.

Heather Horn is PwC’s National office thought leader, responsible for developing our communications strategy and conveying firm positions on accounting and financial reporting matters. She is the engaging host of PwC’s accounting and reporting weekly podcast and quarterly webcast series, as well as periodic webcasts for the power and utilities industry. With over 25 years of experience, Heather’s accounting and auditing expertise includes financial instruments and rate-regulated accounting. 

Transcripts available upon request for individuals who may need a disability-related accommodation. Please send requests to [email protected].