Working Capital Optimization Can Yield Real Gains

Payne, Stephen
September 2002
Financial Executive;Sep2002, Vol. 18 Issue 6, p40
Academic Journal
This article reports on the optimization of working capital to yield real gains and potentially pay down debt, buy back stock or even increase the company's dividend. One example described a company that freed up over $200 million, which was used to complete an acquisition. Optimizing working capital management practices in the customer to cash (C2C), purchase to pay (P2P) and forecast to fulfill (F2F) cycles can free capital to accomplish other business priorities. As a result, the most effective working capital optimization programs will address all three activities.


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