“Cash is King”

“Cash is king” is a clichéd expression sometimes used in analyzing businesses; it refers to the importance of cash flow in the overall fiscal health of any business. The phrase is a favorite of MCMS and we live by it. It describes the importance of sufficient cash as an asset in the business for short term operations, purchases and acquisitions. It is what gives every business owner the flexibility to make the right decisions for the business, its partners and employees. Physicians’ offices are known for having a large amount of accounts receivable generated from the assignment of insurance benefits by patients to the physician or facility. These receivables represent the value or equity of the practice. Not being able to convert the accounts receivable to cash quickly impacts and could technically bankrupt a business particularly in periods where credit markets are dried up or, business is slow. So, at MCMS, this is the dogma by which we live. Cash is king – cash is the lifeblood of any business and as such needs to be protected and be secured.