Europe’s largest companies hold €1.26 trillion in excess working capital, Hackett Group finds
HCKT•The Hackett Group’s 2026 European Working Capital Survey found €1.26 trillion in excess working capital, equal to 14% of annual revenue. The remaining opportunity fell 8%, or €113 billion, from the previous year.
1. Working capital findings
Average cash conversion cycles improved by 1.8 days to 44.8 days in 2025, releasing cash from receivables and inventory. Revenue grew 0.8% while operating cash flow declined 3%. Days payable outstanding fell 3.3 days as stakeholder pressure constrained payment-term extensions, making receivables and inventory increasingly important improvement targets.
