In 2024, global Working Capital Requirements (WCR) surged by 2 days to 78 days—the highest since 2008—driven by economic volatility, trade frictions, and tighter financial conditions. Western Europe saw a +4-day rise for the third consecutive year, while APAC experienced a moderate increase. In contrast, North America posted a rare -3-day decline. 

Key findings include: 

Rising Payment Terms: Days Sales Outstanding (DSO) increased globally, especially in Europe, putting pressure on cash flow. 

Sector Impact: Transport equipment, electronics, and retail saw the largest WCR increases. 

Regional Divergence: US companies reduced WCR by destocking and prioritizing shareholder returns, while European firms took on more trade credit risk acting as “invisible banks” for their customers.