Cash is Still King Across Europe, Poll Reveals

Working capital is a business performance indicator, according to a survey of European company finance professionals by CFO Europe on behalf of ABN AMRO. More than two thirds of European companies said they had active working capital management programmes underway, with respondents citing growth in net profit, cash generation and growth in gross margin as the most important company performance measures to investors. Respondents cited operating profit, cash generation and working capital management as the most effective means of encouraging management to meet targets. Commenting on the results Ann Cairns, Managing Director, Working Capital, ABN AMRO said: ‘This survey reinforces what we hear on a day-to-day basis from our clients. Tough funding conditions have brought working capital and internal cash generation to the top of the agenda and, as businesses position for renewed growth in a permanently volatile world, we expect it to stay there as a fundamental value.’


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