2015 REL Europe Working Capital Survey Highlights Europe’s €1.1 Trillion Opportunity


The survey analyses the accounts of the 947 largest EU companies this year. Key findings include:

  • If EU companies optimised working capital performance they could gain €1.1 trillion.
  • Companies in Europe have more cash on hand than ever before: cash is up 6% from 2013 and 62% over the last seven years
  • The Cash Conversion Cycle (CCC), which represents the time each euro is tied up in the buying, production and sales process before being converted back to cash, improved by 5.5% in 2014. In the US, by contrast, the CCC remained flat. EU Corporations are becoming more adept than their American counterparts at working capital management.
  • Much of the cash, however, comes from debt. Corporate debt has soared to €3 trillion: corporate borrowing is up 40% on 2007. Borrowing increased by 5% in 2014 alone. This surge in debt is a result of years of low interest rates.
  • Cheap debt provides a short term fix for corporations but is holding back important long-term efforts to improve cash flow. The research shows that the more reliant on debt a company is, the less impressive its cash flow performance.

Download the full findings via this whitepaper >>

Most recent episodes

Podcast - Journeys to Treasury Deep-Dive: Cash Flow Hedge Accounting at JT Group

Listen to this audible case study, which provides a lens over the details of a recent cash flow hedge accounting project undertaking by the JT Group treasury team.


Podcast - Innovation as an Enabler: Sustaining Global Trade Finance in Uncertain Times

J.P. Morgan's Bayo Osolake, who joins Eleanor Hill (TMI) to discuss how treasurers can facilitate global trade in the currently turbulent macroeconomic environment.


Relative Normality On Horizon — But Divergent Monetary Policy Pathways Likely

Welcome to the latest edition of Liquidity Link Live, your exclusive market analysis provided by Northern Trust Asset Management.


Audio TMI - MMF Reform Proposals Threaten LVNAV Viability for European Treasurers

Proposed MMF changes currently being debated at European Commission level endanger the utility of one of the most popular forms of MMF used by corporate investors across the continent.

Audio TMI - Special FX

Two experts from NatWest share the inside track on how treasurers can better manage FX risks by shaking up legacy processes and old-fashioned thinking, improving data coll...


Audio TMI - Roadmap Towards a First-Class Group Treasury

As the perennial debate continues around the pros and cons of a centralised tre...


Audio TMI - How Etihad Covered all Three ESG Elements in One Sustainability-Linked Financing

Etihad Airways recently raised US$1.2bn in the first sustainability-linked loan in global aviation with terms that relate to all three areas of ESG.


Reducing Friction in International Payments: Five Steps for Treasury Teams

What are the steps that treasury teams can take to remove roadblocks in processing international payments? Daniela Eder, Gibran Maqsood, and Karsten Becker (Barclays) to answer this question.


Keeping the Plates Spinning: the Art of Treasury Project Management

Sandra Shen (Actualize Consulting) joins TMI's Tom Alford to offer professional insight into what defines successful treasury project management. 


Audio TMI - ESG: Time to Decide

The pressure to comply with ESG initiatives is being felt by corporates like never before, with ESG-compliance a common concern among treasury departments.