Analysis of Global Working Capital Requirements Trends

This technical report discusses the trends in Global Working Capital Requirements (WCR) as of 2024 and early 2025, highlighting significant changes across various regions. The report indicates that WCR increased by 2 days globally in 2024, reaching a total of 78 days, the highest since 2008. It notes a divergence in trends, with Western Europe experiencing a 4-day rise in WCR, while North America saw a decrease of 3 days. The report details the factors contributing to these changes, including rising Days Sales Outstanding (DSO) and the role of firms acting as informal banks by providing trade credit. It also outlines the implications of these trends for corporate strategies, particularly in the context of economic volatility and trade tensions. The report emphasizes the risks associated with firms reallocating resources to shareholder value creation amidst these challenges, and it provides a statistical appendix for further insights.