The amount of cash to businesses Europe record

 

Economic recession makes European firms invest more conservatively that working capital is not used on the record.


According to a report by the consulting firm Hackett Group REL, 2012, working capital is not used by the largest companies in Europe about 762 billion euros ($ 1,000 billion), equivalent to 6% of GDP in the European Union (EU). Synthesis report is based on a survey of 800 listed companies in Europe.
 

Reports indicate, on average, profit and free cash flow (used to analyze liquidity, reinvestment, dividends paid by a business) here tends to decrease. Global economic difficulties, particularly in deep eurozone recession, prompting the European companies invested conservatively, on the other hand, many unpaid bill also makes no use working capital to record their .
 

"The ability to convert cash of European companies fell 3 consecutive years show efforts to manage working capital is not sufficient to break the ice condition" - CEO of REL, Daniel Windaus said.
 

Sales of European business increased by 6% in 2012 however, net profit fell 3%, REL said.