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SOFIA (Bulgaria), July 24 (SeeNews) - France-based credit insurance company Euler Hermes said on Wednesday that large companies in Bulgaria recorded one of the world's highest rates of year-on-year increase in working capital requirement (WCR) in 2018.
WCR is a measure of financial resources that companies consume to cover operating costs and expenses, and run their businesses efficiently.
"In 2018, Global Working Capital Requirement hit its worst level since 2012 (+1 day, 70 days). The evolution of WCR indicates which businesses have improved, or in this case, deteriorated, their capacity to maintain operating cash flow and internal funding for investment," Euler Hermes said in a new study on working capital - a key indicator of the financial situation and behaviour of corporates published earlier this month.
Bulgaria ranked 34th among 36 countries as the WCR of its big companies added 3 days year-on-year to an average of 93 days.
The indicator for Bulgaria is well above the global average of 70 days. Only Saudi Arabia and China were ranked lower.
The rise in Bulgarian companies' WCR is mainly concentrated in three sectors - household goods (170 days), automobiles (164 days) and metals (134 days), Euler Hermes' research showed.