From startups to legacy brands, you're making your mark. We're here to help.
Key Links
Prepare for future growth with customized loan services, succession planning and capital for business equipment.
Key Links
Institutional Investing
Serving the world's largest corporate clients and institutional investors, we support the entire investment cycle with market-leading research, analytics, execution and investor services.
Key Links
Providing investment banking solutions, including mergers and acquisitions, capital raising and risk management, for a broad range of corporations, institutions and governments.
Key Links
A uniquely elevated private banking experience shaped around you.
Whether you want to invest on your own or work with an advisor to design a personalized investment strategy, we have opportunities for every investor.
Explore a variety of insights.
Key Links
Insights by Topic
Explore a variety of insights organized by different topics.
Key Links
Insights by Type
Explore a variety of insights organized by different types of content and media.
Key Links
We aim to be the most respected financial services firm in the world, serving corporations and individuals in more than 100 countries.
Key Links
In the last year, treasury management recovered in ways that revealed themes across the entire economy, but the road to permanent recovery might be long. J.P. Morgan’s annual Working Capital Index Report indicates that working capital has rebounded to pre-pandemic levels. However, geopolitical uncertainties, COVID-19 developments, and economic factors could impact the index moving forward. Read on for key trends like ESG and other main takeaways from the 2022 Working Capital Index.
The Working Capital Index returned to pre-pandemic levels after significantly improving from the prior year. Roughly two-thirds of companies also improved Cash Conversion Cycle, which is how many days it takes for them to convert their inventory into cash flows and helps to quantify working capital efficiency. The pharmaceuticals, apparel & accessories, and automotive industries showed the greatest CCC improvement, while aerospace and defense, technology software, and media industries showed deterioration in CCC performance. The Cash Index also improved as S&P 1500 companies increased their spending of cash following a period of holding onto these funds.
$523 Billion: Estimated working capital that can be released across the S&P 1500 companies
Top industries showing improvement in the CCC in 2021 (number of the days the CCC shortened by) |
Top industries showing deterioration in CCC in 2021 (number of days the CCC lengthened by) |
33 Pharmaceuticals |
3 Aerospace and Defense |
25 Apparel and Accessories |
2 Technology Software |
17 Automotive |
2 Media |
68% of companies in the S&P 1500 saw an improvement in CCC of which:
Overall, 8 days fall in CCC and 6 days improvement in DSO
Top four industries with the highest decline in cash levels in 2021:
Highly indebted industries that need special focus on managing their expansion plans and ESG performance:
Working Capital improved 11 points and returned to pre-pandemic levels for two primary reasons:
Inventory because:
Collections because:
Cash index improved 6 points as companies more strategically deployed cash into:
Cash Conversion Cycle (CCC) improved 8 days because:
ESG impacts the ability to borrow and financing cost
1. Lower ESG score should result in increase in borrowing cost (instead of reduction)
2. ESG Score ↓, Optimize internal funding and working capital management
How industries are improving ESG scores:
Oil and Gas:
Diversify into clean energy and invest in Carbon Capture and Storage technologies
Automotive:
Shift to electric vehicle production and phase out internal-combustion engine fuel cars
Metals and Mining:
Prioritize operations around mining metals for energy transition and expand into used metals recycling
Supply Chain Diversification:
Companies are preventing future global supply-chain shortages by:
1. Localizing supply chains
2. Nearshoring
3. Diversifying supplier base
4. Digitizing procurement processes
5. Creating buffer stocks of essential components
Tech-Driven Business Models:
AI, IoT Blockchain, and Virtual Reality are unlocking additional revenue streams for corporates and could replace traditional ones.
Direct-to-Consumer:
The pandemic accelerated online shopping, which fostered direct-to-consumer models as companies reached customers with:
1. Omnichannel strategies
2. Marketplace models
3. Renewed loyalty programs
Potential adverse impacts to working capital:
Short-term risks:
Long-term opportunities:
To learn more, please contact your J.P. Morgan representative.
Payments
Understanding the requirements to apply for a corporate credit card
Jun 27, 2024
Find out if your organization is eligible for a corporate card, then prepare documentation to apply.
Payments
Choosing the right credit card for your startup
Jun 27, 2024
Startups have unique, complex financial needs, and corporate and business cards can be powerful tools that simplify financial operations.
Payments
J.P. Morgan joins the MACH Alliance, advocating for open, best-of-breed technology
Jun 13, 2024
J.P. Morgan is a Supporter member, a category for leading organizations to share unique thought leadership and innovations on the future of enterprise technology.
Payments
Join J.P. Morgan Payments at EBAday 2024, Lisbon Congress Centre, Booth 73/74
Jun 12, 2024
You want a fast, simple and secure way to send and receive cross-border payments. We can send in 120+ currencies¹ and receive in 40+², across 160+ countries³.
Payments
Studio Science joins the J.P. Morgan Payments System Integrator Program
May 17, 2024
J.P. Morgan Payments is adding Studio Science, a customer experience consultancy, to the program to help joint clients with payments strategy and implementation.
Payments
How to protect your organization from check fraud
May 14, 2024
Check fraud remains an attractive target for fraudsters. Do you know how to prevent it?
Payments
How acquisitions like WePay are accelerating our mission to build a modern payments business
May 13, 2024
The integration of WePay into the J.P. Morgan Payments platform is the latest step forward in how we serve small and medium-sized businesses (SMBs).
Payments
Understanding the differences between corporate and business credit cards
May 01, 2024
Corporate and business credit cards offer significant benefits to corporations and small businesses, respectively. Learn about the key differences.
You're now leaving J.P. Morgan
J.P. Morgan’s website and/or mobile terms, privacy and security policies don’t apply to the site or app you're about to visit. Please review its terms, privacy and security policies to see how they apply to you. J.P. Morgan isn’t responsible for (and doesn’t provide) any products, services or content at this third-party site or app, except for products and services that explicitly carry the J.P. Morgan name.