North America to Hold Significant Share of Working Capital Management Market
The working capital management market is booming due to the increasing demand for working capital management among organizations to maintain sufficient cash flow.
- Working capital management is a type of business strategy, primarily designed to monitor a company’s current liabilities or assets in order to maintain sufficient cash flow, in order to meet short-term debt obligations and short-term operating costs term. Working capital management primarily involves monitoring three main ratios which include fundraising ratio, working capital ratio and inventory turnover ratio.
- In addition, working capital management can improve a company’s profitability and profits by using its resources efficiently.
Global Working Capital Management Market: Dynamic
- The increased demand for working capital management among organizations in order to maintain sufficient cash flow is a key factor that is likely to accelerate the market in the coming years.
- The growing need for working capital management to maximize the operational efficiency of the business, owing to the increasing adoption of temporary working capital, is expected to drive the growth of the working capital management market across the globe. .
- Companies or industries that manufacture products that have seasonal demand and need to maintain seasonal working capital should fuel the working capital management market.
- Increasing adoption of working capital management for providing credit to customers, managing short-term investments, managing inventory and managing debt to avoid excessive borrowing is expected to create new opportunities for the working capital management market during the forecast period.
Global Working Capital Management Market: Constraints
- Insufficient working capital is one of the major factors that can negatively impact the growth of the working capital management market. In addition, the growing security and privacy concerns are likely to hamper the growth of the global working capital management market during the forecast period.
Impact of COVID-19 on the Global Working Capital Management Market
The COVID-19 outbreak has been a major challenge for the post-pandemic business environment. Governments in different countries around the world have imposed containment measures to curb the spread of the disease. Therefore, increased credit risk with more insolvencies, defaults and bankruptcies reported during the outbreak (due to disruption in financial markets) is expected to strengthen the growth of the fund management market. rolling. In addition, the pandemic epidemic has increased people’s short-, medium- and long-term cash flow needs to reduce financial disruption in these difficult times and has dramatically increased the demand for working capital management in developed countries and countries alike. development during the pandemic. epidemic to improve trade receivables. This in turn is expected to drive the growth of the working capital management market during the COVID-19 outbreak.
- In terms of region, the global working capital management market can be divided into North America, Europe, Asia-Pacific, Middle East & Africa, and South America
- North America dominated the global working capital management market in 2020. The United States is the key market for the region, to maintain sufficient cash flow to meet short-term business goals and obligations. multinationals across the country. In addition, the presence of well-established players offering working capital management is expected to stimulate the market in the North American region.
- The Asia-Pacific working capital management market is expected to develop at a rapid pace during the forecast period. This can be attributed to the growing adoption of working capital management among companies in China, Japan, Singapore, Australia and India to improve return on assets and return on equity.
Global Working Capital Management Market: Competition Landscape
Several local, regional and global players are active in the working capital management market with a strong presence. The rapid technological advancements have created significant opportunities in the global working capital management market. Suppliers are increasingly focusing on collaborations, mergers and acquisition activities with technology partners to develop innovative and advanced solutions to improve their offerings and market reach.
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The major players operating in the global working capital management market include:
- Citigroup Inc.
- Deutsche Bank AG
- HSBC Holdings plc
- JPMorgan Chase & Co.
- Raiffeisen Bank
- Standard charter
- Bank of America Company
- The Bank of New York Mellon Corporation
- UniCredit SpA
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