US Companies Have $1.76 Trillion Opportunity to Free Up Cash
- Higher-for-longer rates turn spotlight on working capital
- Research suggests firms can manage day-to-day business better
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With rates expected to stay high for a while, corporate finance chiefs have a strong incentive to skip debt markets and free up more of their companies’ cash instead. And it turns out, they have plenty of it.
The biggest US-based companies can wring a combined $1.76 trillion from their operations by taking steps to tighten up how they manage key areas such as inventory and payments, according to preliminary research from consulting firm Hackett Group Inc.