Deloitte UK Working Capital Report
Deloitte have published a report into the working capital performance of UK businesses in 2011. The report found that excess working capital in UK businesses rose to £64 billion.
According to Deloitte, if this “treasure chest” of capital was released, it could be used to fund the growth of those businesses or to overcome temporary downturns.
Unfortunately, many businesses are responding to a deterioration in receivables performance by delaying payments to suppliers which has corresponding negative impacts further down the value chain, affecting the wider economy.
Deloitte show an increasing divergence between the working capital management of the best and worst performers, with the UK’s performance deteriorating compared to North America and Western Europe.
The full report can be downloaded here.