Blog | Knowit

Capital Efficiency Outlook 2025

Written by Erik Påhlson | Oct 27, 2025 12:30:45 PM

In this year’s edition of Knowit’s Capital Efficiency Outlook, we highlight three key insights shaping how Swedish companies manage capital efficiency in 2025:  

Stable average performance masks divergent trends

Overall working capital levels have remained largely unchanged year-over-year, supported by disciplined liquidity management. However, stability at the aggregate level conceals opposing developments across segments. Inventory reductions among upstream suppliers are offset by slower destocking in manufacturing and selective restocking among downstream companies.

Improved conditions, continued caution

Falling interest rates and fiscal support have eased financing constraints, but most companies maintain a cautious stance. Defensive liquidity management continues to dominate behavior, reflecting limited confidence in near-term demand recovery and a focus on preserving flexibility.

Preparedness defines performance

The outlook’s scenario analysis underscores that readiness, not prediction, determines success. Whether recovery comes sooner, later, or in line with forecasts, companies that maintain capital discipline and agility can adapt faster, investing early when demand returns, preserving liquidity if headwinds persist, and balancing growth with efficiency as conditions normalize. Building this preparedness into planning, purchasing, and cash management is what separates resilient companies from reactive ones 

Please download the full report below. We hope you find the Capital Efficiency Outlook 2025 insightful.