Net Working Capital Study: Unlocking Liquidity in DACH Manufacturing
Net Working Capital rose 7% across DACH manufacturing between 2019 and 2024, driven by inventory. See where manufacturing companies can release cash and boost liquidity
How has Net Working Capital developed across the DACH region, and where can manufacturing companies release cash and strengthen financial resilience?
The latest H&Z study analyses nearly 300 companies from the manufacturing industry between 2019 and 2024. It reveals how supply-chain disruption, inflation, rising financing costs and weaker demand have affected Working Capital Management.
INVENTORY IS THE KEY WORKING CAPITAL LEVER
Median NWC increased from 76 to 81 days, an overall rise of 7%. The main driver was inventory: Days Inventory Outstanding rose by nine days, with three-quarters of the companies analysed recording a deterioration.
Improvements in receivables and payables only partially offset this increase. While Automotive and MedTech improved their NWC performance, Aerospace & Defence and Electronics experienced the strongest deterioration.
The findings show that effective Inventory Management is now critical. Safety stocks, the shift from just-in-time to just-in-case supply chains, declining demand and slow adjustments to purchasing and production have tied up substantial capital. Releasing it is less a finance exercise than a question of how planning, production and procurement work together, which is where our Operational Excellence work starts.
STRENGTHEN LIQUIDITY AND COMPETITIVENESS
Higher interest rates and tighter financing conditions have increased the urgency of reducing Working Capital. Companies that optimise inventories, receivables and payables can improve Cash Flow, strengthen Liquidity Management and reduce their reliance on external financing. On the payables side, supplier terms remain largely untapped as a liquidity lever, a topic we cover in Procurement & Cost Management.
What's inside?
- Benchmark data from around 300 manufacturing companies across the DACH region, 2019 to 2024
- Development of net working capital (inventory, receivables, and payables) and the role of inventory management
- Industry comparison and concrete levers for working capital optimisation
DOWNLOAD THE STUDY
Download the H&Z Net Working Capital Study to explore industry benchmarks, key trends and practical opportunities for improving working capital performance.
CONTACT OUR EXPERTS
Sandra Stoll
