The goal of a company's cash management policy is to

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The goal of a company's cash management policy is to minimize the cash requirement. This can be achieved by effectively managing cash inflows and outflows, optimizing the timing of payments, and ensuring that adequate funds are available to meet operational needs without holding excess cash that is not earning a return. The objective is to strike a balance between liquidity and profitability, while minimizing the cost of financing. Increasing the cash conversion cycle or payment period can actually harm a company's financial health by reducing cash flow and increasing financing costs, while maximizing cash outflows is not a desirable goal.

The Goal of a Company's Cash Management Policy Is to