The Hackett Group® Study Finds €1.26 Trillion Remains Trapped in Working Capital Across Europe’s Largest Companies
Business Wire•04/11/2026•10:00 ET
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Key Highlights
- ➤€1.26 trillion remains trapped in excess working capital across Europe’s largest companies
- ➤Cash conversion cycle improved 1.8 days to 44.8 days in 2025
- ➤Revenue grew 0.8%, while operating cash flow fell 3% and EBITDA declined 2%
- ➤Working capital opportunity declined €113 billion to €1.26 trillion year over year
- ➤Accounts payable represented the largest opportunity at €464 billion, or 37%
Expert Statements
Anne Morgan-Smith, Director at The Hackett Group and author of the research
“One of this year’s most significant findings is the divergence between working capital performance and broader financial performance”
Anne Morgan-Smith, Director at The Hackett Group and author of the research
“With revenue growth slowing and profitability under pressure, working capital efficiency is becoming an increasingly important source of self-funded liquidity. By releasing cash tied up in receivables and inventory, companies can help fund operations, reduce borrowing needs and preserve capacity for strategic investment.”
Anne Morgan-Smith, Director at The Hackett Group and author of the research
“The opportunity isn’t simply to automate collections or invoice processing. It’s to rethink how cash moves through the business”
Anne Morgan-Smith, Director at The Hackett Group and author of the research
“AI can help organizations improve forecasting, resolve disputes faster and optimize payment processes, but the greatest value comes when those capabilities are integrated into end-to-end processes. That’s how companies can turn short-term working capital gains into sustainable improvements.”
The Hackett Group(®) Study Finds €1.26 Trillion Remains Trapped in Working Capital Across Europe’s Largest Companies
Cash conversion cycles improved 1.8 days despite weakening profitability, underscoring the need for process-led transformation to sustain gains
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