Improving working capital management (WCM) can generate cash to fund value-creating opportunities and reveal insights that improve other aspects of business performance, a recent McKinsey report reveals.
Ryan Davies and David Merin of McKinsey in their report titled “Uncovering cash and insights from working capital” point out working capital is often undermanaged simply because of lack of awareness or attention.
Working capital management – Quick way to free up cash
The McKinsey consultants make the point that working capital management is often painstakingly technical. They highlight they often observe companies generating tens or even hundreds of millions of dollars of cash impact within 60 to 90 days, without increasing sales or cutting costs.
They cite the example of the global aluminum company...
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