“Cash is King” is a colloquial phrase often heard in business circles regarding the importance of holding sufficient cash for short-term working capital and maintaining an adequate level of liquidity. The 2024 Working Capital Report by McGrathNicol (released November 2024) revealed a $754 million increase in cash tied up in working capital across ASX-listed companies. This was driven by extended debtor and inventory cycles, and an average Days Working Capital (DWC) increase by 0.4 days.” The impact of which is felt throughout the entire supply chain as a “knock-on effect” to SME business, creating a working capital squeeze. Why Working...
