Nobody needs to be told that we're in the midst of an epic financial crunch. So why do so many companies have to be reminded to pull their socks up and manage their working capital more efficiently? How can these major organizations, world class in so many respects, continue to let scarce capital languish in inventories, receivables and the like when they could be using it to fund growth, or at least to pay for corporate golf outings?
OK, maybe it's just human (and corporate) nature at work, and constant reminders are necessary. So for those of you who ignored the
last post on the topic (and you know who you are), here's another bulletin: The consultants at Booz & Co. reckon that U.S. publicly held companies are leaving as much as $950 billion in working capital untapped on their corporate balance sheets, according to a new report.
We're not sure if this is better or worse than the $1 trillion that Ernst & Young LLP said was tied up on the balance sheets of the 2,000 largest companies in the U.S. and Europe, which triggered our outburst in mid-June. But clearly there's work to be done.
On that front, Booz has devised an
interactive tool that will help you do better. We implore you to use it -- or to be prepared for an even sterner reminder. -
Kenneth Klee
Join Corporate Dealmaker's LinkedIn forum
Adele Gulfo
And the winners are...
