Working capital management a top priority for many executives in year ahead

Working capital management a top
priority for many executives in year
ahead
Deloitte poll results from November 2021

Working capital management a top priority for many executives in year ahead
Copyright © 2022 Deloitte Development LLC. All rights reserved.
1,700+
Methodology
C-suite and other executives were polled
online during a Deloitte webcast titled
“Working capital roundup: A resilient
response Q1-20 to Q2-21” on Nov. 16, 2021.
Answer rates differed by question. A similar
online poll was conducted in July 2020.
In some instances, immaterial amounts (e.g., +/-
0.1%) have been added to or removed from the
“Don’t know/not applicable” answer responses to
bring results to 100% total for each question.

Crisis mode -- Still working
to improve liquidity strains,
accounts receivable delays,
inventory stockpiles, remote
workforce needs, forecast
for financials, etc.
Recovery mode --
Beginning to see liquidity
unlock, gaining visibility
and control into cash
outflows, collections
strategies develop, and
sales and operations
plans are starting to
improve
Stabilization mode --
Stability established for
liquidity, cash leakage
reductions, cost-
reduction opportunity
identification, and
inventory strategies
Growth mode -- Capital
unlocked for investment,
cash-flow predictability
achieved, cost reductions
realized, and adapted and
improved financial
forecasting established.
Don’t know / not applicable = 16.7% in Nov. 2021; 10.5% in July 2020
Which best describes your organization’s current state, following COVID-19
disruptions?
Votes received 2,212 in Nov. 2021; 1,519 in July 2020
11.1%
22.3%
42.9%
13.2%
5.4%
14.0%
30.4%
33.5%
2020 2021

Don’t Know / Not Applicable = 24.5%
Do your organization’s finance and treasury functions work closely on working
capital management?
Votes received 1,935
44.1%
25.6%
5.8%
Yes, they work as
closely as they should
Yes, but they could work
more closely together
No, they do not
work together

Cross-tabbing “Which best describes your organization’s current state, following
COVID-19 disruptions?” 2022 results (slide 3) to those of “Do your organization’s
finance and treasury functions work closely on working capital management?”
(slide 4)
Yes, they work as
closely as they
should
Yes, but they
could work
more closely
together
No, they do
not work
together Don't know
Growth mode
40.4% 33.5% 29.1% 23.2%
Stabilization mode
33.3% 36.5% 34.5% 18.7%
Recovery mode
13.1% 21.5% 16.4% 6.0%
Crisis mode
7.0% 4.1% 13.6% 2.2%
Don’t know
6.2% 4.4% 6.4% 49.9%
Do your organization’s finance and treasury functions work
closely on working capital management?
Which
best
describes
your
organization’s
current
state,
following
COVID-19
disruptions?
30-40% 20-30%
<40%

Which executive is most responsible for improving your organization’s working
capital?
55.9%
15.3%
8.0% 7.6%
Chief Financial
Officer
Treasurer / Head of
Treasury Function
Chief Accounting
Officer
Other

When does your company’s accounts receivable team first reach out regarding
invoice due dates?
More than 10 days after due
date
1-10 days before due date
On due date
More than 10 days before
due date
1-10 days after due date
19.4%
20.6%
9.1%
10.5%
7.0%

How will your organization manage working capital during the next 12 months?
No change
We will make it a higher priority
It was not a priority before and will
not become one
We will make it a lower priority
It was a top priority before and will
stay one
1.6%
2.1%
26.2%
14.7%
33.6%

Media Contacts
Taylor Graham
Public Relations
Deloitte Services LP
tagraham@deloitte.com
Shelley Pfaendler
Public Relations
Deloitte Services LP
spfaendler@deloitte.com

The statements in this report reflect the aggregation of poll responses and are not intended to reflect facts or opinions of any entities. All data,
charts and statistics referenced and presented, as well as the representations made and opinions expressed, unless specifically described
otherwise, pertain only to the participants and their responses to the Deloitte poll. The information obtained during the poll was taken “as is”
and was not validated or confirmed by Deloitte.
This presentation contains general information only and Deloitte is not, by means of this presentation, rendering accounting, business, financial,
investment, legal, tax, or other professional advice or services. This presentation is not a substitute for such professional advice or services, nor
should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may
affect your business, you should consult a qualified professional advisor.
Deloitte shall not be responsible for any loss sustained by any person who relies on this presentation.
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Working capital management a top priority for many executives in year ahead

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Working capital management a top priority for many executives in year ahead