Free Cash Flow Release

Indirect taxes tie up substantial amounts of cash: value-added tax alone can represent up to 25% of the gross value of all transactions in the supply chain. Yet few businesses realize they can do something to release this cash.

"Free cash" can be used to reduce borrowing, to reinvest or to distribute to shareholders. In short, it can be used in any way a business chooses to meet its key performance targets. And the business community increasingly looks to free cash as a more accurate indicator of business success than traditional earnings-based measures.

Free Cash Flow Release is our innovative approach to quantifying the cost of cash tied up by indirect tax. Using proprietary technology, we then find opportunities to release the cash critical to businesses’ market performance and borrowing capabilities

For further information on Free Cash Flow Release, contact your local Ernst & Young indirect tax adviser, or Peter Jenkins.