Working capital is essential to good financial and operational management. PwC's newly launched Working Capital report, ‘Pressure in the system’, looks at how poor working capital management could be impacting your company's value.
Return on Capital Employed (ROCE) is one of Warren Buffet's favourite KPIs to determine company value and our study shows that it has taken a dive in the last five years. Whilst profitability is at a 5 year high, net debt has dramatically increased by 4%. When interest rates creep up, this could have the potential to create huge problems.
Improving working capital management can be the key to reducing debt burdens and improving returns. Within our Deals team we have working capital experts who can share views on good practice to help you address any working capital concerns you may have.
For more information please contact:
Peter Dickens, PwC Partner Restructuring - email@example.com
or Emma Bannister Senior Manager Restructuring - firstname.lastname@example.org