Working Capital: a Strategic Perspective

Tens of trillions of dollars are tied up globally in working capital an amount comparable to the total fixed assets deployed across industries worldwide. At the same time, working capital remains one of the most misunderstood and underutilised areas in strategic management and corporate finance. Too often, it is seen as secondary or oversimplified in strategic decision making, and doesn’t get the attention it deserves.

Our new material highlights the complex and multi-faceted nature of working capital and is based on our own specific project experience.

• working capital links day to day operations to long term value generated by fixed assets.
• companies can improve returns by adopting a proactive, sometimes even risk oriented, approach to working capital, treating it as a value creative asset rather than an operational necessity.
• working capital is a dynamic tool that drives outcomes aligned with evolving stakeholder needs when managed properly.
• working capital is a cornerstone of any effective business strategy and plays a critical role in strategic business planning related to growth, cost optimisation, M&A, and financial stability.
• oversimplifying working capital management can lead to missed opportunities, costly mistakes, and even financial distress.

The complexity of working capital often calls for an experienced, multidisciplinary team capable of addressing the financial, operational, and strategic challenges involved.

Through this lens, we invite you to rethink working capital as a pivotal enabler of business performance and growth.

We explore common misconceptions, working capital management, stakeholder expectations, return enhancing strategies, working capital in business models, good housekeeping, investments and divestments in working capital, and common challenges.