Working Capital Management in the North American and European Pharmaceutical Industry
Need for Effective Working Capital Management
Fizzling innovation model
Access to new markets
Price premium pressure
The analysis of Year-on-year (YOY) revenue growth shows that the growth in both North American and European industries declined between 2009 and 2013.
In big pharma, US companies successfully reduced the days inventory outstanding by % between 2009 and 2013, while European companies were able to reduce it by only % in the same period.
In 2013, mid-size companies were not able to reduce their days sales outstanding compared to previous years. Days sales outstanding for US companies increased by % between 2009 and 2013.
In smaller companies, the analysis of days sales outstanding reveals that US companies have a better receivable performance compared to European companies.
About this report
This study analyzes the various working capital components in the pharmaceutical industry. The analysis has been done across the North American and European regions. Companies have also been analyzed for their working capital efficiency and year-on-year growth during the study period 2009 to 2013. The analysis includes various components of working capital management such as days inventory outstanding, days payable outstanding, days sales outstanding and cash conversion cycle. The study also analyzes the participants in the pharmaceutical industry based on their revenue ranges. It also covers the various trends that impact working capital performance of the participants in the pharmaceutical industry.
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