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2023
Working Capital 2022: The trends in Italy and the USA compared
The economic consequences resulting from the spread of the COVID-19 pandemic and the escalation of the Russian-Ukrainian conflict are only the most recent examples that illustrate the instability of cash flows for companies, both in terms of nominal values and payment and collection times. The following discussion aims to determine the effectiveness and the need for Supply Chain Finance financial solutions capable of optimizing cash management, reducing risks and amplifying the opportunities that depend on it. The conclusions presented in the analysis “Working Capital 2022: The trends in Italy and the USA compared” were drawn on the basis of the results of the Deloitte analysis “Working Capital Roundup 2022” (1) — carried out on a sample of companies listed in the USA — and the research carried out in parallel by Hoshin (2) on Italian companies in the manufacturing sector with revenues exceeding €5 million. The comparison between the data on the performance of the respective companies, with regard to cash management efficiency, highlights the lower capacity of Italian industries to convert operating profits into cash. This figure was recorded despite a significant growth in 2022 in the use of Factoring - together with Reverse Factoring, the main financial solution for managing Working Capital - by Italian companies. This would therefore indicate the need for further integration of these systems, even if only to match the current cash efficiency recorded in the United States.
Working Capital 2022: The trends in Italy and the USA compared
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