|
|
17 Jun 2009
Companies across the US and Europe have $1 trillion locked up in working capital which could be used to bolster liquidity.
The rate of improvements made to working capital performance had slowed from 63 per cent of companies in the US and 50 per cent of companies in Europe to 43 per cent of both regions, E&Y's report - 'All tied up' discovered.
Inventory levels increased in the US by 10 per cent and Europe, up four per cent in the final quarter of 2008, the study found.
The amount tied up in these businesses represents 6 per cent of sales. For every US$1 billion in sales, firms could decrease their working capital balance by an average of US$60 million.
Further reading:
You may also like
Search thousands of financial jobs:
Search thousands of financial jobs:
Careers
Search for jobs
Click to search our database of all the latest accountancy roles
Create a profile
Click to set up your profile and let the best recruiters find you
Jobs by email
Sign up to receive regular updates with the latest roles suitable for you
Briefings
By looking at the reasons supplier statements became unfashionable, and the reasons why it is different today, this paper delves into the many benefits that can be obtained by automating the process.
Having a real and true view of your organisation’s current financial position, and having the right systems and processes in place, will ensure that you can make strong choices and are ready to capitalise on opportunities
AccountancyAgeInsight is a frequently updated resource centre for finance professionals, offering a free and easy-to-use digital library of briefings, white papers and other information resources. 
Visitor comments Add your comment