The Hackett Group Inc., a leading consultancy and executive advisory firm, has released findings from its 2025 U.S. Working Capital Survey. The report highlights a 4% increase in aggregate revenue for 2024, largely driven by innovation-led sectors such as semiconductors, which saw a substantial 28% growth, and internet software and services, with a 14% rise. Earnings before interest, taxes, depreciation, and amortization (EBITDA) margin improved by 6%, reaching 19%, attributed to cost optimization efforts. Operating cash flow as a percentage of revenue enhanced to 16%, supported by reduced costs of goods sold and improved working capital practices. Capital expenditures rose by 5% as companies focused on investments in AI infrastructure and supply chain resilience. The survey also reveals a 4% improvement in the cash conversion cycle, now at 37 days, after a year of deterioration. This rebound was driven by a 3% improvement in days payable outstanding, presenting new opportunities to unlock liquidity amidst ongoing uncertainty. However, both days sales outstanding and days inventory outstanding showed slight deteriorations. The report notes that $1.7 trillion remains trapped in excess working capital, representing 35% of gross working capital and 11% of aggregate revenue. The findings underscore the strategic importance of optimizing payables, receivables, and inventory to enhance liquidity and support growth, with generative AI emerging as a valuable tool in addressing working capital inefficiencies.