Benchmarking Working Capital – Why Averages Mislead and Setpoints Matter
Benchmarking Working Capital is one of the most widely used – and most misunderstood – tools in corporate finance. Peer comparisons promise clarity but often distort reality. This article challenges the blind reliance on benchmarks and shows why operating working capital (OWC) must be managed beyond averages. Instead of chasing external league tables, companies should define their own setpoint: the optimal working capital level shaped by strategy, structure, and transactional data.
Purchase to Pay – Working Capital Hub’s Free Self Assessment Framework
The Purchase to Pay (P2P) cycle is more than just a back-office function – it’s a strategic driver of liquidity, supplier trust, and growth. From purchase requisition to supplier payment, P2P directly impacts operating working capital by optimizing cash outflows, strengthening supplier relationships, and improving compliance and efficiency. With Working Capital Hub’s free self-assessment framework, you can evaluate your P2P maturity, identify gaps, and unlock opportunities to enhance cash flow, resilience, and long-term financial flexibility.