European Working Capital Efficiency Declines: CCC Worsens by 3%, €1.4 Trillion Tied Up in Excess Working Capital

The Hackett Group's 2025 European Working Capital Survey shows a 3% deterioration in cash conversion cycle, driven by rising days sales outstanding and inventory outstanding, outpacing gains in days payable outstanding. The analysis covers the 1,000 largest European-headquartered nonfinancial companies, with €1.4 trillion tied up in excess working capital. Top-quartile performers are holding steady, but median companies are falling behind, driving the overall decline.