Europe’s Largest Companies Hold €1.26 Trillion in Excess Working Capital, Hackett Group Finds
- The Hackett Group's 2026 European Working Capital Survey found €1.26 trillion in excess working capital, equivalent to 14% of annual revenue.
- Average cash conversion cycles improved by 1.8 days to 44.8 days in 2025, releasing cash from receivables and inventory.
- The remaining working capital opportunity declined 8%, or €113 billion, from the previous year.
- Revenue growth reached just 0.8%, while operating cash flow declined 3%, increasing the importance of working capital efficiency.
- Days payable outstanding fell 3.3 days as stakeholder pressure constrained payment-term extensions, making receivables and inventory increasingly important improvement targets.
Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. The Hackett Group Inc. published the original content used to generate this news brief via Business Wire (Ref. ID: 202611041000BIZWIRE_USPR_____20261104_BW644794) on November 04, 2026, and is solely responsible for the information contained therein.