The traditional view of working capital assumes that cash performance is primarily the result of financial discipline. Companies improve outcomes by collecting faster, paying strategically and managing inventory more efficiently.
But new PYMNTS Intelligence research in the June 2026 edition of the Growth Corporates Working Capital Index turns those assumptions on their head. The strongest performers, the report found, are now approaching the challenge from the opposite direction. Instead of asking how to optimize cash, they are asking how to improve visibility.
The top-performing middle market firms surveyed convert cash in an average of 24.2 days, compared to 44.4 days for lower-performing peers. On the surface, the finding appears to be about liquidity. Look more closely, however, and it reveals something more important: a growing divide in how companies capture, share and act on operational data.
Working Capital Is Becoming a Data Advantage
To achieve a 24-day cash conversion cycle, it’s necessary that finance, procurement, operations and suppliers all operate from the same assumptions and the same information. Improvements in working capital are no accident. Behind every step sits the ability of finance teams to turn information into cash.
Top performing finance leaders recognize that every invoice, supplier transaction, inventory movement and customer payment generates information. When that information is fragmented across departments and systems, forecasting becomes less reliable and liquidity decisions become more reactive. When it is connected, companies gain a clearer picture of future cash flows and can deploy capital with greater confidence.
In that sense, working capital has become a data problem before it becomes a finance problem. The organizations achieving the strongest liquidity outcomes are often the same organizations that have invested in better forecasting, more integrated workflows and greater visibility across their operations.
After all, among the most overlooked aspects of working capital performance is that it tends to reinforce itself. In an economy defined by uncertainty, that may prove to be one of the most valuable capabilities a company can possess.
Read the report: The 24-Day Advantage: What Top-Performing CFOs Know About Working Capital
Competitive Advantages That Are Hard to Copy
Extending payment terms or accelerating collections can improve results temporarily. Building an organization where finance, procurement, operations and suppliers operate from shared information creates something far more durable.
As companies digitize processes and automate accounts payable and receivable workflows, they generate more operational data. That data improves forecasting accuracy. Better forecasting supports better liquidity decisions, better liquidity decisions improve working capital performance, and that in turn creates additional operational activity and, ultimately, more data.
The cycle feeds itself. Over time, that dynamic can create meaningful separation between leaders and laggards. A company that converts cash nearly three weeks faster than its peers gains nearly three weeks of additional decision-making time. It can hire sooner, replenish inventory sooner, pursue growth initiatives sooner and react to disruptions sooner.
That advantage is difficult to quantify on a balance sheet, but it can have significant competitive implications. The firms with the shortest cash conversion cycles are not necessarily those with the most capital. They are often the ones with the clearest view of what is happening inside their businesses.
For years, working capital was viewed primarily as a source of liquidity. Today, the strongest finance leaders are discovering that its greatest value may be informational. The real advantage is not simply having more cash available. It is building an organization where information moves quickly enough to become cash in the first place.
At PYMNTS Intelligence, we work with businesses to uncover insights that fuel intelligent, data-driven discussions on changing customer expectations, a more connected economy and the strategic shifts necessary to achieve outcomes. With rigorous research methodologies and unwavering commitment to objective quality, we offer trusted data to grow your business. As our partner, you’ll have access to our diverse team of PhDs, researchers, data analysts, number crunchers, subject matter veterans and editorial experts.
