FEAR & GREED | Business News Q+A: How Aussie businesses released $8.2b in 'locked-up' cash
Nov 25, 2025
Sean Wiles and Jason Ireland, partners at McGrathNicol Advisory, delve into their thirteenth annual Working Capital Report, revealing how Australian businesses have unlocked a staggering $8.2 billion in cash flow. They discuss the impressive improvements across sectors like agriculture, health, and construction. Jason emphasizes the importance of consistent cash management processes, while Sean highlights Australia's strong performance in global comparisons. Their insights shed light on the essential strategies for optimizing working capital and enhancing business health.
AI Snips
Chapters
Transcript
Episode notes
Widespread Shortening Of Working Capital Cycles
- Australian companies shortened working capital cycles in 11 of 13 sectors in 2025, showing broad improvement.
- Improvements shifted from paying suppliers slowly (2024) to better inventory and collections management (2025).
Released $8.2B By Cutting Working Capital Days
- The report estimated Australian companies released $8.2 billion of 'locked-up' cash in 2025 by shortening working capital days.
- Smaller suppliers still face pressure as larger listed companies can shift cash-flow timing onto them.
SMEs Bear The Brunt Of Payment Timing
- Smaller SMEs that supply ASX-listed entities often face shifting payment terms and must be excellent at cash management.
- Jason Ireland emphasised SMEs need tight processes because larger companies can change how quickly they pay suppliers.