GermanyChemicals and materials2023 – ongoingCovestro
Machine-learning forecasts of short-term operating cash flows
Covestro reported a smaller liquidity buffer after improving cash-flow forecasts with machine learning
Problem
Covestro maintained a liquidity buffer for short-term operational management. More accurate operating cash-flow forecasts could reduce the buffer it needed.
Approach
Covestro applied machine learning to historical and current data for short-term operating cash-flow forecasts. It automated data processing within liquidity risk management. The company reported that improved forecast accuracy allowed a considerable buffer reduction during 2023.
Results
No published figures
Takeaway
Covestro connected better forecasts to a change in liquidity management. It did not quantify the accuracy improvement or the buffer reduction.
Categories
- Size
- Large enterprise
- Industry
- Chemicals and materials
- Business function
- Finance, risk and legal
- Innovation type
- Process innovation
- AI technology
- Predictive analytics and ML
- Adoption
- Built in-house
- Evidence
- Company's own claim
Sources
Source summaries
Covestro reported using machine learning and automated data processing to improve short-term operating cash-flow forecasts. It attributed a considerable reduction in its operational liquidity buffer during 2023 to better forecast accuracy, without giving amounts.
Full details are in the original sources.
