Benchmarking Your

Working Capital

The importance of effective working capital management has become front and center as companies globally look to tap internal sources of funding to manage the uncertainties presented by the COVID-19 crisis.

J.P. Morgan’s 2020 Working Capital Index report provides treasury and finance practitioners with insights into the working capital performance of the S&P 1500 companies in the past year. We also assess the impact of the coronavirus outbreak across industries and focus on how companies can better manage liquidity risks going forward.

The report captures trends from the Working Capital Index, Cash Index and Cash Conversion Cycles (CCC) of the S&P 1500 from 2011 to 2019.

CCC is a metric that helps in quantifying how efficiently a company is managing its working capital. It measures the amount of time it takes to convert inventory purchases into cash flows. CCC formula is represented as:


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CCC Terminology

Days Inventory Outstanding (DIO) measures the average number of days the company holds its inventory before selling it.

Days Sales Outstanding (DSO) measures the average number of days before a company collects payment after a sale is made.

Days Payable Outstanding (DPO) reflects the average number of days a company takes to pay its suppliers.

Key Takeaways At A Glance


Estimated working capital that can be released across S&P 1500 companies

Top 3 industries showing
deterioration in CCC in last 8 years

(Number of days the CCC lengthened by)

Group 3 14.7 12.6 11.5 Pharmaceuticals Semiconductors Apparel & Accessories

Top 3 industries showing
improvement in CCC in last 8 years

(Number of days the CCC shortened by)

Group 5 5.9 2.7 2.5 Chemicals Utilities Consumer Staples

CCC Highlights

CCC Highlights of companies experienced a deterioration in CCC where 60% 76% showed a lengthening in DSO 79% experienced an increase in DIO 

Top 3 industries showing
decrease in cash levels in last 8 years

Top 3 industries showing decrease in cash levels in last 8 years 6.3% Oil & Gas Upstream 4.2% Technology Hardware 3.8% Technology Software

Industries most impacted by COVID-19

(based on earnings revisions)

2020 capital index icon airline


2020 capital index icon airline

Apparel Retail

2020 capital index icon accessories

Apparel &

2020 capital index icon entertainment


2020 capital index icon auto

Auto & Auto Parts

Growth in earnings per share post-crisis

Growth in earnings per share post-crisis 120% 66% Companies with the top-performing CCC Companies with bottom-performing CCC

Companies with improved CCC showed nearly 50% additional growth in earnings per share post the global financial crisis.

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