Abstract Background: Cash management means the management of liquidity in order to meet their day-to-day commitment. The result of poor focus on cash management often means that the financial assets are bound. The management of liquidity is not something new but cash management is a modern way of doing that. Cash management is a very broad subject which involves many factors, this paper will focus on examine how the liquidity is managed in Jonsons Byggnads AB, in order to improve the liquidity through cash management thinking. Jonsons Byggnads AB is a local construction firm located in Jönköping. This paper will examine the firm’s liquidity with focus on payment/payout routines, liquidity management, short-term financing and the connection between accounts receivables and payables.   Purpose: The purpose is to examine Jonsons bygg’s liquidity today in order to later recognize which factors within cash management that can strengthen the liquidity position for Jonsons Byggnads AB. Method: This is a qualitative study based examining the liquidity management for Jonsons Byggnads AB. The collection of the data and information was gathered by interviews, observations and balance sheet/income statement (Jonsons Byggnads AB). The interviews were done with Fadi Babil (The owner of Jonsons Byggnads AB) and two other staff members, which have chosen to be anonymous. Fadil Sadiku (Financial advisor at Swedbank) have also been interviewed in order to gather information about various products Swedbank offers to improve the liquidity for Jonsons Byggnads AB. Conclusion: The result of this study showed us that Jonsons Byggnads AB have good liquidity position even though the company does not have anyone employed to manage the liquidity. Even though Jonsons bygg’s liquidity position is healthy, there are some areas that can be improved. Improvements in the payment/payout routines can be done by computerizing the sales ledger system completely and therefore be more efficient and profitable. Connecting the invoices to an account with higher interest is also an approach to be more profitable. Since the accounts being used today have almost no interest.

<p> </p><p>This research puts forth a new perspective on cash-to-cash cycle, a performance metric that relates to both finance and supply chain management. In criticism of the existing literature, which virtually views the firm as an isolate body, we look at cash to cash cycle optimization through a supply chain lens, in the hope of being able to formulate a more discreet approach. Our study involves a literature review followed by a case study featuring Dell Inc., the American PC manufacturer. The authors discuss the effects of C2C optimization by dissecting the metric into its 3 constituents,whereby we are able to examine the effects of different C2C optimization methods separately. We bring up the caveats posed by these individual methods and also uncover the cases where reciprocal improvement opportunities lie. Lastly, we lay out our findings by proposing suggestions to deal with such effects under the defined scenarios.</p><p> </p>

This research puts forth a new perspective on cash-to-cash cycle, a performance metric that relates to both finance and supply chain management. In criticism of the existing literature, which virtually views the firm as an isolate body, we look at cash to cash cycle optimization through a supply chain lens, in the hope of being able to formulate a more discreet approach. Our study involves a literature review followed by a case study featuring Dell Inc., the American PC manufacturer. The authors discuss the effects of C2C optimization by dissecting the metric into its 3 constituents,whereby we are able to examine the effects of different C2C optimization methods separately. We bring up the caveats posed by these individual methods and also uncover the cases where reciprocal improvement opportunities lie. Lastly, we lay out our findings by proposing suggestions to deal with such effects under the defined scenarios.