Strategy & Execution
Inventory working capital: releasing cash without hurting service
Inventory now explains most of the cash conversion cycle. Segment SKUs by variability and value, and release cash where service is not at risk. The report sets out the considerations and practical implications discussed in the article.
- Format
- PDF · 15 pages
- Published
- Published Oct 2026
- Article
- Read the article
What's inside
- 01Inventory, not payables or receivables, now drives the cash cycle
- 02At a 4% policy rate, idle stock has a visible price
- 03Ratios show most sectors are already leaning out, but unevenly
- 04The cycle is regional and sectoral, which means it can be managed
- 05Tariff buffers have inflated stock, and unwinding them blindly is risky