Smart working capital solutions

European companies hold the highest levels of working capital, but Europe as a region has shown the biggest improvements during the last four years.

Working capital says a lot about how well a company is being managed. It is an indicator of good management, as top working capital players have outperformed across all KPIs (EBITDA, C/I ratio, ROE…). Companies with sustained working capital improvements, based on successful working capital management, have competitive advantages in their markets

Leverage points for working capital management: Days Sales Outstanding (DSO), Days Inventory Outstanding (DIO) and Days Payables Outstanding (DPO) as influencing variables of the cash conversion cycle.
Factoring is an instrument to reduce the DSO and/ or to expand the DPO in order to reduce the cash conversion cycle and free extensive cash reserves tied up in companies' balance sheet