Mumbai: JP Morgan launched a working capital index which enables companies to benchmark their working capital performance against industry peers.
The index captures and consolidates the working capital metrics from the companies listed on the S&P composite 1500 index and provides firms with valuable insights into the working capital performance of some the worlds largest and most influential companies.
“Industry benchmarking is typically the first step for many companies looking to optimize their working capital, but there are limited tools available to do this effectively, primarily because of the lack of access to reliable industry data. We developed the Index to help our clients identify inefficient use of liquidity within their organizations and explore opportunities to improve their internal sources of funding,” said Gourang Shah, head of Treasury Services Solutions for Asia Pacific at J.P. Morgan.
“Indian corporates can greatly benefit from the JP Morgan working capital Index by better understanding their own cash conversion cycle, benchmarking to peers in their industry and formulate & implement an action plan for their working capital initiatives”- Guhaprasath Rajagopal, Head, Treasury Services, J.P. Morgan, India
The analysis of the Index found substantial liquidity trapped within the supply chains of the S&P 1500 companies, with the poRead More – Source