Great potential for improvement of global working capital

Global working capital trends reveal a 6.6% increase in Days Sales Outstanding (DSO) over the last five years, tightening liquidity and making it harder for businesses to unlock available cash. Inventory levels, which had improved post-pandemic, are showing signs of stagnation or reversal. Elevated policy rates across major economies like the EU, US, and UK add further pressure on companies to focus on working capital efficiency to maintain flexibility and resilience.

New EU regulations targeting payment terms are also expected to reshape how businesses manage their cash flows, placing additional emphasis on improving Days Payable Outstanding (DPO) and receivables processes. Now, more than ever, companies must act decisively to tap into these excess reserves and transform their operations.

Read the global study to explore how companies around the world are navigating these challenges and uncover key strategies to unlock hidden value.

Danish working capital trends

In Denmark, net working capital has increased by 5 days from 2022 to 2023, a rise driven by significant fluctuations in inventory and payables. Inventory levels, which had improved in 2022, have now returned to pre-pandemic levels, largely due to higher inventory in the Pharmaceutical & Life Sciences sector and volatility in Energy sector. Within Pharma & Life Sciences, asset days rose by 6 days, whereas the Technology sector has seen improvements by 16 days. As a result, net working capital as a percentage of revenue has climbed to 12%, the highest level in the past four years.

How can we help?

Our experts within working capital management can help improve operational and financial key figures with a focus on creating both short and longterm value for your organisation.