Companies' efforts to improve their working capital seemto be lagging.

NACHA's recent decision to provide same-day settlement of ACHtransactions should be a plus going forward for working capital atcompanies that use ACH to make payments or that receive a lot ofconsumer payments via ACH. However, a couple of recent surveyssuggest that over the past year companies made little headway infreeing up more of their cash through receivables, payables, orinventory.

Consulting company REL's annual benchmarking of working capital at 1,000 largecorporations showed there was no change last year in the averageorganization's cash conversion cycle, a measure of the time ittakes a company to recoup the money it spends producing goods bycollecting from its customers.

Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.

  • Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Susan Kelly

Susan Kelly is a business journalist who has written for Treasury & Risk, FierceCFO, Global Finance, Financial Week, Bridge News and The Bond Buyer.