Working Capital Report 2025
Working capital conditions improve, as businesses unlock $8.2 billion in additional cash
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McGrathNicol has today released the 13th edition of its annual Working Capital Report. The findings revealed that working capital was managed more efficiently in 2025. Most sampled Australian companies were able to shorten their working capital cycles by reducing inventory and speeding up customer collection, releasing $8.2 billion in previously “locked up” cash.
Conducted by McGrathNicol’s Cash and Working Capital Centre of Excellence, the research analysed the most recent full year results and working capital performance of 278 ASX-listed companies (with a combined market capitalisation of $2.09 trillion). The sample was made up of companies across 13 working capital-intensive sectors and included a deep dive into Agriculture, Food & Beverages; Construction & Engineering; Retail; and Health & Aged Care. International comparisons to similar businesses in the US, Asia and EU were also made.
The report tracked changes in the length of working capital cycles and found that most sampled Australian companies (53%) were able to improve their cash flow by shortening their working capital cycle. With a more than 80-day spread between the “best and worst” operators, businesses must embed cash flow forecasting and effective working capital management practices to achieve real competitive advantages.
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