Navigating 2025 working capital trends: Priorities for 2026

Impact on key financial metrics

While companies delivered 6.8% top-line growth and 9.9% EBITDA expansion, liquidity required careful navigation as funding costs stayed elevated. The implication: finance leaders can’t rely on P&L momentum alone—they need structural working capital optimization that holds under stress, not just quarter-end actions.

Working capital performance

2025 delivered a modest improvement in corporate liquidity, with the cash conversion cycle (CCC) shortening by approximately 0.9 days year-over-year. But the headline number only tells part of the story—what matters is where performance improved, and which levers are starting to strain.

Across many organizations, CCC gains were driven by reductions in Days Inventory Outstanding (DIO) and extensions in Days Payable Outstanding (DPO), while Days Sales Outstanding (DSO) rose as collection pressures persisted. In other words, cash conversion improved, but unevenly—often reflecting active, day-to-day working capital management rather than durable, end-to-end efficiency.
The sector picture is even more decisive—and reinforces a CFO reality: working capital optimization strategies must be tailored by industry and sub-sector.

Download Working Capital Roundup to explore the full sector-by-sector results and benchmark your organization’s working capital performance.

Working capital insights: A sector-by-sector breakdown

Recent cash conversion gains have often been supported by tactical moves in payables and inventory. Looking ahead, more durable improvement is likely to come from stronger forecasting, workflow automation, and closer supplier collaboration

Looking ahead: What’s next for finance leaders

As organizations look toward 2026, the liquidity landscape is poised for significant transformation. The challenge entering 2026 is that liquidity performance is becoming harder to sustain with manual effort and one-time levers alone. As volatility persists and operating models grow more complex, the next evolution of cash management is increasingly shaped by intelligent technology, agile execution, and more integrated supplier partnerships.

Two trends are emerging as high-impact levers for finance leaders:

• Sector Insights: Revealing structural performance shifts beneath headline metrics – where divergent drivers across industries (e.g., inventory build, receivables pressure, and payables strategy) are reshaping cash conversion and exposing targeted opportunities for working capital optimization.
• Agentic AI: Turning working capital into a self-optimizing system – where agents continuously sense risk and opportunity, trigger real-time interventions (e.g., repricing, collections actions, liquidity moves), and adapt decisions dynamically to unlock cash faster and reduce volatility.

We help you thrive

In an era defined by continuous market shifts, optimizing liquidity is no longer just a functional metric—it is a strategic imperative. By combining agile operational strategies, advanced technology, and collaborative partnerships, finance leaders can transform cash flow from a standard output into a distinct competitive advantage.

The path forward for 2026 is clear – engineer a more intelligent, resilient approach to working capital management. Combining deep industry experience with actionable insights and advanced capabilities, organizations can build robust cash governance frameworks and navigate complex financial dynamics, shifting from reactive oversight to truly outcome-driven performance.