The 2013 annual working capital survey of top companies yielded eye-opening results with direct implications on the bottom line. The research, which examines the ability of companies to collect from customers, manage inventory, and pay suppliers, found that as revenue grew by 5 percent in 2012, profitability decreased.
Overall, top performers in the study operate with about half the working capital of typical companies. They collect from customers more than two weeks faster, pay suppliers over 10 days slower, and hold less than half the inventory. Nearly half of the working capital management gap represents excess inventory being held by typical companies.
Find out how well top companies manage their working capital and get benchmarks for the best, and worst, to see how your performance compares.
REL, a division of The Hackett Group, Inc. is a world-leading consulting firm dedicated to delivering sustainable cash flow improvement from working capital and across business operations. REL's tailored solutions balance client trade-offs between working capital, operating costs, service performance and risk. REL's expertise has helped clients free up billions of dollars in cash, creating the financial freedom to fund acquisitions, product development, debt reduction and share buy-back programs. In-depth process expertise, analytical rigor and collaborative client relationships enable REL to deliver an exceptional return on investment in a short timeframe. REL has delivered work in over 60 countries for Fortune 500 and global Fortune 500 companies.
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