From startups to legacy brands, you're making your mark. We're here to help.
Key Links
Prepare for future growth with customized loan services, succession planning and capital for business equipment.
Key Links
Serving the world's largest corporate clients and institutional investors, we support the entire investment cycle with market-leading research, analytics, execution and investor services.
Key Links
Providing investment banking solutions, including mergers and acquisitions, capital raising and risk management, for a broad range of corporations, institutions and governments.
Your partner for commerce, receivables, cross-currency, working capital, blockchain, liquidity and more.
Key Links
A uniquely elevated private banking experience shaped around you.
Whether you want to invest on your own or work with an advisor to design a personalized investment strategy, we have opportunities for every investor.
For Companies and Institutions
From startups to legacy brands, you're making your mark. We're here to help.
Serving the world's largest corporate clients and institutional investors, we support the entire investment cycle with market-leading research, analytics, execution and investor services.
Your partner for commerce, receivables, cross-currency, working capital, blockchain, liquidity and more.
Prepare for future growth with customized loan services, succession planning and capital for business equipment.
Providing investment banking solutions, including mergers and acquisitions, capital raising and risk management, for a broad range of corporations, institutions and governments.
For Individuals
A uniquely elevated private banking experience shaped around you.
Whether you want to invest on you own or work with an advisor to design a personalized investment strategy, we have opportunities for every investor.
Explore a variety of insights.
Key Links
Insights by Topic
Explore a variety of insights organized by different topics.
Key Links
Insights by Type
Explore a variety of insights organized by different types of content and media.
Key Links
We aim to be the most respected financial services firm in the world, serving corporations and individuals in more than 100 countries.
Key Links
---------------------------------------
$146.7 billion - Estimated working capital that can be released across the Nikkei 225 companies
ROCE gap between S&P 1500 and Nikkei 225 has increased by 1.2% ROCE
CCC ROCE gap between S&P 1500 and Nikkei 225 has increased by 1.2 days
Difference between Nikkei 225 and S&P 1500 - 27.8 in year 2022 increased from 26.6 in year 2020
Cash gap in cash has increased by 1.6%
Difference between Nikkei 225 and S&P 1500 – 7.2% in year 2022 increased from 7.2% in year 2020
EBIT gap in EBIT has increased by 0.6%
Difference between S&P 1500 and Nikkei 225 – 4.4% in year 202 increased from 3.8% in year 2020
13.1 points - decline in WC Index
157.7 days - Difference between leaders and laggards
2.2 points - Increase in cash index
61% of companies in the Nikkei 225 saw an improvement in CCC of which:
Overall, 7.8 days fall in CCC and 5 days improvement in DSO
*****
Working capital levels at Nikkei 225 companies have improved drastically due to an increase in global demand from government and central banks’ fiscal and monetary policies.
The return on capital employed (ROCE) gap between Japanese corporates and global counterparts increased from 3.3 percent in 2021 to 4.5 percent in 2022.
Treasurers should focus on working capital and liquidity management needs to ensure their businesses can endure future uncertainties and invest towards growth.
Japanese corporates experienced improved CCC by 7.8 days due to global demand pick-up
Japanese corporates witnessed an improvement in overall CCC by 7.8 days due to global demand pick-up.
DSO declined by 5 days driven by a recovery in demand and faster collections as companies could bargain for better terms for their customers.
After the rise in DPO in FY2020, DPO levels in FY2021 saw a decline of 3.8 days.
DIO levels exhibited a drop by 6.5 days for Nikkei 225 companies, driven by higher-than-expected consumer demand coupled with supply chain disruptions. The CCC gap between Nikkei 225 and S&P 1500 companies has largely remained flat, with a slight improvement of 1.2 days on an average basis.
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
ROCE for an average S&P 1500 company has grown significantly higher.
The difference between earnings before interest and taxes (EBIT) margins of an average S&P 1500 and a Nikkei 225 company has increased in 2022 to 4.4% from 3.8% in 2020.
While the working capital/sales levels gap has marginally narrowed by 0.5% in 2022, it is still significantly higher for an average Nikkei 225 company at 22.5% as compared to just 16.2% for an average S&P 1500 company. While cash/sales levels at S&P 1500 companies dropped by 1.2%, cash levels increased for Nikkei 225 companies by 0.4%, widening the gap substantially to 7.2% as of 2022.
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.
• 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.
• DIO declined by 11.2 days due to strong demand. DSO levels fell by 8.1 points, closer to pre-pandemic levels.
• The pharmaceutical industry experienced overall improvement in working capital levels.
• 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.
• 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.
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.
Auto & auto parts:
Chemicals:
Pharmaceuticals:
Technology hardware:
Industrial machinery:
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.
ESG Agenda
Oil & Gas - Diversifying into clean energy
Materials - Focus on CCS and Recycling
Automotive - Expanding Hydrogen Fuel-Cell & EV Production
Supply Chain Diversification
Automotive - Nearshore + Vertical Integration
Apparel and Accessories - Nearshore production; Predictive data driven supply chain management
Technology Hardware - Stock buffers of critical supplies
Tech driven business models
Automotive - Focus on Connected Cars and in car services
Apparel and Accessories - Incorporating Augmented Reality and V-Commerce
Technology Hardware - Expanding with ecosystem of connected devices
Direct to customer
Apparel and Accessories - Expanding reach directly to customers
Quick Service Restaurants - Integrated loyalty programs
Automotive - Online vehicle purchasing
To learn more about how we can support your business, please contact your J.P. Morgan representative.
Payments
Creating a corporate card policy for your company and employees
Dec 05, 2024
While it’s critical to find the best corporate card program or mix of cards for your company, it’s equally important to create a policy to govern the use of these cards.
Payments
PSD3 Builds a regulatory foundation for open banking, cross-border payments and more
Nov 26, 2024
Learn how the Third Payments Services Directive builds on PSD2 and aims to encourage open banking adoption
Payments
Driving in-car payments forward with Mobility Payments Solutions
Nov 18, 2024
In-car payments have the opportunity to introduce new use cases for drivers, but first there are some challenges to overcome.
Payments
J.P. Morgan Payments and Elastic highlight the importance of supporting developer relationships
Nov 12, 2024
Developers often have a direct influence on technology choice and are key in business decision-making.
Payments
Introducing Kinexys by J.P. Morgan, formerly Onyx
Nov 06, 2024
Onyx is now Kinexys. With growing transaction volumes, client adoption and product expansion, we’re poised to accelerate the adoption of blockchain technology and tokenization into mainstream financial services.
Payments
Mapping the road ahead for electric vehicle charging providers
Oct 24, 2024
At this pivotal juncture for the electric vehicle industry in Europe, we’ve prepared a report that analyzes key trends and strategies for the future that may pave the path for improved customer adoption and sustainable industry growth.
Payments
Going global: Revolutionizing international workforce payments with Papaya Global
Oct 22, 2024
Here’s how the pioneering global workforce management platform transformed its payment capabilities with J.P. Morgan Payments cross-currency solutions.
Payments
Making cross-border payments faster, safer and less costly for financial institutions
Oct 21, 2024
To help their clients send money all over the world, banks must adapt with the times.
You're now leaving J.P. Morgan
J.P. Morgan’s website and/or mobile terms, privacy and security policies don’t apply to the site or app you're about to visit. Please review its terms, privacy and security policies to see how they apply to you. J.P. Morgan isn’t responsible for (and doesn’t provide) any products, services or content at this third-party site or app, except for products and services that explicitly carry the J.P. Morgan name.