1,000 of the biggest U.S. companies freed up $72 billion through improved efficiency


Last year, 1,000 of the biggest U.S. companies freed up about $72 billion through improvements in collecting bills, turning over inventory and stretching out the amount of time they take to pay their own suppliers, according to a survey by Hackett-REL, a unit of business-consulting firm Hackett Group that focuses on working-capital issues.

These companies reduced the amount of money they have tied up in working capital by an average 5.6% from 2004, according to the survey. Of the 82 industries surveyed, 45 improved their working-capital situation, while 35 worsened and the rest were unchanged from a similar survey in 2004.

U.S. companies are reaping the benefit of increased investment in software that helps manage their cash and treasury operations

Among sectors that registered the biggest improvement: cable broadcasters, which saw working-capital needs decline 46%; big oil companies, which posted a 45% drop; and marine-transportation companies, which had a 30% fall.

Reducing working-capital needs can lead to significant improvements in a company's overall cash flow. At machinery producer Caterpillar Inc., an 8% reduction in working-capital needs freed up about $2.4 billion in cash last year.

Previous: « Semiconductor Sales To Surpass $240 Billion This Year

Next : » Total U.S. printer shipments totaled 7.7 million units in 2Q


  ABOUT    CONTACT Metrics 2.0 RSS Feeds RSS   Metrics 2.0 Widgets for your site or blog WIDGETS   ARCHIVES


Enter Email for Daily Feed Delivery: