Summary of findings


Cash Conversion Cycle (CCC) advancement

Japanese corporates experienced improved CCC by 7.8 days due to global demand pick-up

Japanese corporates see widening of gap in ROCE compared to global counterparts

Increase in demand caused the ROCE of Nikkei 225 companies to improve, however, the ROCE for average global companies has grown significantly higher – creating an ideal opportunity for Japanese corporates to improve their capital utilization and free up cash to invest more towards capital expenditure that can help companies grow

Industry insights across the Cash Conversion Cycle

Cash Conversion Cycle across five key industries increased over the span of six years, while Days Sales Outstanding (DSO), Days Inventory Outstanding (DIO) and Days Payable Outstanding (DPO) levels were mixed overall.

  • true

    Auto and auto parts


    • DPO declined by 5.9 days, more than compensating for the decline in DSO.


    • DIO levels fell down by only 1 day despite high demand.

  • true



    • DIO declined by 11.2 days due to strong demand. DSO levels fell by 8.1 points, closer to pre-pandemic levels.

  • true



    • The pharmaceutical industry experienced overall improvement in working capital levels.

  • true

    Technology hardware


    • DPO saw a sharp decline by 15.6 days that offset a substantial decline of 10.4 days. The technology hardware industry faced a decline in DIO levels of only 2.1 days.

  • true

    Industrial machinery


    • Japan, being one of the global leaders in manufacturing machinery, saw inventory levels for the industry decline by 15.6 days while DSO improved by 9.3 days.

Future growth for supply chain ecosystems

How companies operate and make decisions in the future will influence the supply chain ecosystems – materially impacting corporates’ working capital as supply chains adjust to create supplier diversification that shift with emerging trends.

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