Working Capital Efficiency: Its Impact on Profitability and Operational Performance

Many organizations overlook the substantial impact a sustained reduction in working capital has on top-line performance indicators such as profit margin. But statistical analyses of the relationship between working capital performance and profitability illustrate how reducing the cash conversion cycle can improve EBITDA margins and significantly increase profitability – by as much as 20% in some cases.

Working Capital Efficiency: Its Impact on Profitability and Operational Performance

Download this article and learn more including:

  • A statistical analysis of the correlation between key working capital metrics and profitability
  • Which metrics to prioritize to make the most significant gains
  • How working capital and business process efficiencies are related
  • Which industries had the most significant working capital gains
  • Framework to optimizing key working capital measures
  • The long-term impact of working capital improvements

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