How Industrial Companies Can Unlock Hidden Cash

Why Net Working Capital matters now more than ever

In today's volatile market environment, industrial companies in the DACH region face rising interest rates, ongoing supply chain disruptions, and growing financial pressure. In this context, Net Working Capital (NWC) is no longer just a financial metric – it’s a strategic lever for improving liquidity and ensuring resilience.
Our new H&Z Net Working Capital Study 2025 provides exclusive insights into how 290 manufacturing companies from Germany, Austria and Switzerland have managed their NWC between 2019 and 2023 – and what challenges and opportunities lie ahead.

Key insights: Inventory is the biggest driver behind rising NWC

The study reveals a clear pattern: While Days Sales Outstanding (DSO) and Days Payables Outstanding (DPO) have remained relatively stable over the last few years, inventory levels have increased significantly.
Key finding: From 2019 to 2023, Days Inventory Outstanding (DIO) rose by 17% across industries – becoming the largest contributor to higher NWC levels in the DACH manufacturing sector.
For many companies, this means cash is unnecessarily tied up in stock, which could otherwise be used to finance growth, innovation, or strengthen resilience in a downturn.

About the study

The H&Z Net Working Capital Study 2025 is based on a benchmarking analysis of 290 manufacturing companies with revenues above EUR 50 million. The study focuses on eight key industries in the DACH region, with a deep dive into the Industrial Goods sector.

The study includes:

• NWC development from 2019 to 2023, including the impact of COVID-19 and the current economic slowdown
• Industry-specific benchmarks for DSO, DIO, DPO and overall NWC performance
• The effects of supply chain volatility and rising capital costs on working capital
• Actionable recommendations to optimise NWC and improve liquidity

Why industrial companies need to act now

In recent years, companies have been forced to build up inventories to protect themselves against supply chain disruptions. However, with higher financing costs and declining demand in certain sectors, this strategy now poses a significant risk to liquidity.
Key takeaway from the study: Inventory optimisation is the most effective and urgent lever to reduce NWC and unlock trapped cash.
Our study provides not only a data-based perspective but also hands-on advice on how companies can rebalance receivables, payables, and inventory – without compromising operational performance.