Search
 
Best Practices

Working Capital in the ‘New Normal’

How companies can leverage working capital management to build business agility as the economy recovers from Covid.

By T&R Staff | August 05, 2021 at 03:07 PM
Stock illustration: Money on a stopwatch

If anything positive has come out of the Covid-19 pandemic, it may be companies’ new focus on working capital management at every level of the organizational structure.

The Hackett Group recently released its analysis of 2020 trends in the corporate cash conversion cycle. The results are not surprising given last year’s business climate. Among the 1,000 largest publicly traded U.S. companies, excluding the financial services sector, days sales outstanding (DSO), days payables outstanding (DPO), and days inventory on hand (DIO) all increased—by 1.5 days, 4.4 days, and 4 days, respectively.

Payments are taking longer to arrive and inventory is spending more time on shelves, but those are not the only interesting results of the study, according to The Hackett Group’s associate principal Craig Bailey and director Istvan Bodo. Treasury & Risk sat down with both thought leaders to discuss how companies managed working capital through Covid and what they should be doing as we emerge from the pandemic economy.

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

Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • 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.

Already have an account?

NOT FOR REPRINT

© 2023 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.

 

Recommended Stories

Treasury & Risk

Join Treasury & Risk

Don’t miss crucial treasury and finance news along with in-depth analysis and insights you need to make informed treasury decisions. Join Treasury & Risk now!

  • Free unlimited access to Treasury & Risk including case studies with corporate innovators, informative newsletters, educational webcasts, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM publications including PropertyCasualty360.com and Law.com.

Already have an account? Sign In Now
Join Treasury & Risk

Copyright © 2023 ALM Global, LLC. All Rights Reserved.