**London**: PYMNTS Intelligence and Visa unveil a pioneering interactive report and benchmarking tool aimed at enhancing working capital management among middle-market firms, providing critical insights and tailored strategies to optimise financial performance and operational efficiency across various industries worldwide.
Over the past two years, insights into the strategies and challenges faced by middle-market firms—known as Growth Corporates—have been extensively explored by PYMNTS Intelligence in collaboration with Visa. These entities, which generate annual revenues between $50 million and $1 billion, are considered potential giants in their respective sectors. Central to the findings of this research is the importance of external working capital, crucial for managing daily operations and long-term planning.
In a comprehensive effort, PYMNTS Intelligence sought input from nearly 1,300 Chief Financial Officers (CFOs) and treasurers located across 23 countries, five worldwide regions, and eight different industry segments. The outcome revealed that effective working capital management blends both art and science, marked by the necessity for specific metrics tailored to individual industries and regions. The challenge of crafting a customised roadmap for each enterprise has persisted until now.
Today marks the launch of the “2024-2025 Growth Corporates Working Capital Index” Dynamic Report, a pioneering interactive report that enables businesses to sift through insights based on regional and industry-specific parameters. This newly introduced report offers a detailed analysis aimed at improving metrics such as days payable outstanding (DPO) and optimising diverse financial strategies. It highlights key trends, including year-on-year data comparisons from 2023, focusing on what distinguishes top-performing businesses from their competitors.
The report underscores various financial tools that can assist companies in enhancing their operations. Among these tools are bank lines of credit, invoice factoring, and virtual cards, which are pivotal for improving financial performance through enhanced access to external funding solutions.
Accompanying the Dynamic Report is the “Working Capital Performance Benchmark” tool. This advanced resource allows businesses to evaluate their external funding strategies against industry peers. Users begin with fundamental demographic inputs—operating regions, industry type, and revenue range—before delving into the specifics of supply chain metrics.
The calculator assesses several factors, including supplier integration with order and payment systems, trends in days sales outstanding (DSO) and DPO, inventory levels, and preferred financing solutions, all of which influence financial health. Upon completion, users receive a personalised Benchmark Report and Score, which provides a succinct overview of their company’s standing and highlights both strengths and weaknesses in comparison to industry counterparts.
The new offerings aim to provide firms with insights into how their strategies align with those of their peers, the efficacy of financial instruments in driving operational efficiency, and the tangible benefits that can arise from optimised capital management, particularly as evidenced by top performers.
The development of the “Growth Corporates Working Capital Index: Benchmarking, Solutions, and Strategic Insights,” a joint project commissioned by Visa and conducted by PYMNTS Intelligence, involved an extensive study undertaken from May 21, 2024, to July 9, 2024. The research encompassed evaluations of 1,297 businesses across major industry categories, spanning five global regions and 23 countries. The firms received Index scores on a scale of 0 to 100, with higher scores denoting higher efficiency, while the top 20% of scoring companies were identified as top performers.
Businesses interested in accessing the new Dynamic Report and the benchmarking tool are encouraged to explore these innovative resources designed to aid in advancing their working capital management strategies.
Source: Noah Wire Services
