Five Myths About Improving Working Capital

Download Now Date Added: Feb 2010
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Improving working capital performance enhances a company's competitiveness by increasing its Return On Invested Capital (ROIC). However, generating cash through working capital improvement is often easier said than done. The path to working capital improvement is beset with a number of myths. They are not labeled as such but generally come in the form of proprietary methodologies, strategies, tool kits, and one-size-fits-all prescriptive solutions. While many of these solutions are offered with the best of intentions, they commonly lead to an expensive and disappointing conclusion.