Chinese corporates outperformed their international counterparts in terms of working capital at the start of the pandemic. However, factors such as a slower-than-expected demand recovery have since contributed to a “normalisation” process.
Treasurers last year moved away from cash preservation and towards deployment as pandemic woes eased, but must remain cautious amid new uncertainties, a JP Morgan report found.
Best practices in managing working capital involve galvanising support across all lines of business, and treasury – with its expertise in managing cash, risk and banking relationships – can play a central role.