Trinity TMS helps incorporate cash flows from commodity futures contracts into company-wide financial and liquidity planning. The system allows users to model specific scenarios and better quantify the impact of price fluctuations on the company’s overall liquidity by comparing different plans.
The exposure overview makes it possible to quickly determine the hedging requirements for commodities and select the appropriate instrument.
Unless companies purchase the respective commodities through spot transactions, most companies use foreign exchange forwards to hedge against exchange rate fluctuations, as these instruments are cost-effective, clearly calculable and easy to understand. In addition to forwards, options can also be recorded.
All cash flows arising from derivative financial instruments are immediately reflected in liquidity planning and cash management without the need for duplicate data entry.
For more in-depth analyses, valuations and simulations aimed at optimising the commodity portfolio, we recommend the solution provided by our partner KYOS.
