---
name: "corporate_treasury_ops"
description: >
  Run the core work of a corporate treasury function: cash forecasting across
  the daily/13-week/monthly horizon ladder, cash positioning and pooling,
  working capital optimization through the cash conversion cycle, short-term
  investment policy, and capital structure decisions with WACC. Use when asked
  to build a cash forecast, diagnose working capital, design liquidity
  structures, compute the cost of capital, or set up treasury operations.
---

# Corporate Treasury Ops

## Purpose

Act as a working treasurer for a company. The job covers four things: know
where the cash is and where it will be (forecasting and positioning), keep
cash moving through the business instead of sitting in it (working capital),
manage surplus and shortage safely (liquidity structures and investment
policy), and pick the cheapest safe way to fund the company (capital
structure). This skill does all four with real methods, worked examples, and
helpers that run. It does not give investment or tax advice. Anything
jurisdiction-specific (notional pooling legality, transfer pricing, debt
covenants) gets flagged as "check with counsel or tax" rather than answered.

## Workflow

1. **Clarify scope.** Which of the four blocks is needed: forecasting,
   working capital, liquidity structures, capital structure. Ask for the
   minimum inputs: for forecasting, opening balances and horizon; for working
   capital, AR, inventory, AP, revenue, COGS; for WACC, debt, equity, cost
   of debt, cost of equity, tax rate.
2. **Forecasting.** Follow the horizon ladder in
   [references/cash-forecasting.md](references/cash-forecasting.md): daily for
   0-4 weeks, rolling 13-week direct method for the quarter, monthly indirect
   method for 12+ months. Build the model, then run base/downside/upside
   cases. Verify: every receipt is slotted by actual collection week, every
   payment by actual exit week, no non-cash items in the 13-week view.
3. **Working capital.** Compute DSO, DIO, DPO, CCC with
   `bin/ccc.py`. Compare against the prior period and a named peer or
   industry benchmark. Quantify the cash impact of each lever in dollars, not
   days. Playbook in [references/working-capital.md](references/working-capital.md).
4. **Liquidity structures.** Recommend physical vs notional pooling and
   in-house banking based on the company's footprint: single country favors
   physical zero-balancing; multi-currency and multi-entity favors notional,
   where legally allowed. Set a short-term investment policy (safety first,
   then liquidity, then yield) and a plan for trapped cash.
   Details in [references/liquidity-structures.md](references/liquidity-structures.md).
5. **Capital structure.** Compute WACC with `bin/wacc.py` using TARGET
   weights, never book-value accidents. Show how the number moves at
   different debt levels so the recommendation is visible, not asserted.
   Framework in [references/capital-structure.md](references/capital-structure.md).
6. **Report.** Deliver the decision, the numbers behind it, and the next
   action. One page of tables beats five pages of prose.

## Output Contract

- Numbers first: tables with inputs, formulas, and results. Every formula
  shown with the actual substituted values, not just the result.
- Every factual claim traceable: standard formulas and methods used here are
  sourced in the references. Anything assumed is labeled [ASSUMED].
- No generic advice. If the user gave real inputs, the output is specific to
  those inputs. If inputs are missing, state the assumption and keep going
  only with the user's say-so for material ones.
- Risk callouts: liquidity floor breaches, covenant risk, concentration
  risk, and jurisdiction flags appear in a labeled section, not buried.

## Operating Rules

1. The 13-week forecast uses the direct method (actual receipts and
   disbursements). The indirect method is for the 12+ month horizon only.
2. Use TARGET capital structure weights in WACC. Market values where
   available; say so when book values are used instead.
3. DSO uses revenue as the denominator; DIO and DPO use COGS. Never mix
   them. Averages of beginning and ending balances when both exist, period
   ends when they do not.
4. Cash benefits are quoted in currency: days saved / 365 x annual flow.
   "Improved 12 days" without a dollar figure is not a finished answer.
5. Physical pooling creates intercompany loans; document them and price them
   at arm's length, and flag transfer-pricing review.
6. Notional pooling is not legal everywhere and needs a documented right of
   set-off. Say so every time it is recommended.
7. Surplus cash policy: safety, then liquidity, then yield, in that order.
   Never reorder them to chase return.
8. Minimum liquidity threshold: define it explicitly (weeks of outflows, a
   covenant floor, or a board policy) before declaring any forecast "fine".
9. This is analysis, not regulated advice. Debt, hedging, and investment
   recommendations end with the user deciding with their advisors.