Winning at Cash Flow Management

Figure 1: Working capital opportunity

Source: The Hackett Group, “2021 Hackett 1000,” June 2021

Working capital opportunity total is $1.29 trillion:

• Inventory opportunity - $446 billion
• Accounts payable opportunity - $464 billion
• Accounts receivable opportunity - $368 billion

Figure 2: Changes during the first nine months of 2021

Source: The Hackett Group, “2021 Hackett 1000: Q3 Update,” December 2021

• Revenue +14%
• Accounts receivable +11%
• Days sales outstanding -3% (44.4 days to 43.1 days)
• Inventories +11%
• Days inventory outstanding 0% (44.4 days to 44.3 days)
• Accounts payable +15%
• Days payables outstanding +4% (55.4% days to 57.6%)
• Cash on hand -1%
• Debt -1%
• Cash conversion cycle -10% (33.4 days to 29.9 days)

Figure 3: Strategies to counter inflation

Source: YPO, “Business Outlook for 2022: Global Chief Executives Positive for the New Year,” December 13, 2021

• Raise prices 51%
• Look for efficiencies 43%
• Automate 28%