Europe/US Working Capital Survey
2005 European Working Capital Survey
The latest survey on the working capital situation of the
largest 1,000 European companies by sales reveals for the year
2004 a further improved performance, with a year on year drop of
3.3%. European corporations still continue to pay attention to
working capital management as a way to drive liquidity and
returns. Each working capital component contributed last year to
the overall improvement.
A more refined working capital analysis shows a higher
proportion of sectors reporting improved year on year
performance, suggesting a lower magnitude in weighted reduction
changes. Among those that have shown the biggest meaningful
working capital improvements last year were Aerospace & Defense,
Distillers & Brewers, Food Retailers and Telecoms, while Auto
Manufacturers, Commodity Chemicals, Electrical Components and
Industrial Diversified were flat or deteriorated.
A detailed country analysis reveals improved DWC
performance across nearly every European country. Among the
major economies, Italy and the UK saw the biggest working
capital improvements last year, but their performance was more
mixed when compared with 2002. France and Germany registered
further DWC reduction, but at a substantially lower rate than in
2003.
While progress has been achieved, an initial benchmark and
comparative information analysis reveals that the largest
European companies still have in total close to