SINGAPORE – Media OutReach Newswire – 24 September 2024 – Aon plc (NYSE: AON), a leading global professional services firm, today announced the release of its 2024 Working Capital and Performance Benchmarking Report for Asia Pacific. The study examines the working capital performance and practices of more than 900 companies across 21 industries and 12 countries/territories in the Asia Pacific region.
According to the report, the average days receivable for Asia Pacific companies for year ending 2023 was 71 days. Although a small increase from 2022, an increase in days receivable reflects a decrease in working capital availability and indicates slower collection of cash from customers.
The report also reveals significant variations in days receivable across industries and countries/territories, highlighting the need for regional and sector-specific solutions. In the financial year ending 2023, companies in Japan reduced their days receivable by five days to 42 days and now lead the region in days receivable performance. Conversely, companies’ days receivable increased considerably in Hong Kong at 65 days (+3.6), Thailand at 64 days (+2.6) and India (+2.7). While Hong Kong and Thailand remain below the regional average of 71 days, India fell further back to 100 days, emphasizing an opportunity for Indian corporates to optimize their working capital management.