What is Working Capital | Definition, Formula, & Business Application
Discover what working capital really means, how it’s calculated, and why it’s a cornerstone of business success. This guide breaks down current assets and liabilities, explores their impact on cash flow and the cash conversion cycle, and shows how strong working capital management fuels liquidity, profitability, and growth. With practical tips and 10 actionable strategies to improve efficiency, this article is your starting point for mastering working capital and turning financial insights into measurable results.
Unlocking Liquidity: Insights from PwC’s 24/25 Working Capital Study
Explore the key findings from PwC’s Working Capital Study 24/25. The report uncovers €1.56 trillion of excess working capital and shows how deteriorating receivables, weaker supplier terms for SMEs, and sector inefficiencies are reshaping liquidity challenges – and what companies can do to unlock cash.
Summary of J.P. Morgan’s 2024 Working Capital Index
J.P. Morgan’s 2024 Working Capital Index reveals $707B trapped, longer CCC, and sector risks. Learn how firms can unlock liquidity and drive growth.
Navigating Cash Flow Risk: Key Takeaways from Intrum’s European Payment Report 2025
Intrum’s European Payment Report 2025 delivers deep insights into business payment behavior across 25 European countries. Key findings include persistent late payments, sweeping risks to SMEs, AI’s emerging role in managing payment delays, and how revenue shortfalls could threaten up to 10 million businesses and 40 million jobs—highlighting urgent imperatives for efficiency and cash flow resilience.
Summary of McKinsey’s Insight: Optimizing Working Capital to Build Transformation Momentum
McKinsey highlights how working capital improvements can deliver quick wins that fuel broader transformation. From mapping the cash conversion cycle to leveraging automation and setting clear KPIs, their insight shows how companies can release cash fast, build momentum, and sustain long-term change.
What is Operating Working Capital | Definition, Formula and Business Application
Operating Working Capital (OWC) goes beyond liquidity—it reveals how efficiently a business turns inventory, receivables, and payables into cash. This guide explains OWC’s definition, formula, and business application, showing why mastering it is essential for profitability, resilience, and sustainable growth
Working Capital and the Cash Conversion Cycle | Definition, Calculation and Considerations
The Cash Conversion Cycle (CCC) measures how quickly a business turns working capital into cash by balancing inventory, receivables, and payables. This guide explains the CCC definition, calculation, and interpretation—showing why managing it effectively is critical for liquidity, growth, and resilience
Working Capital & Cashflow | Definition, Relationship and Business Application
Profits don’t guarantee liquidity – cashflow does. This article explains the link between working capital and cashflow, showing how receivables, payables, and inventory shape a company’s true financial health. Learn definitions, formulas, drivers, and strategies to turn profits into usable cash.