Stronger margins do not always translate into higher returns. This year’s Capital Efficiency Outlook shows that Swedish listed companies are once again tying up more capital in their operations. For owners, boards and management teams, this raises an important question: which working capital creates value, and which can be released?
Inventory and customer credit help companies grow and deliver on their promises. At the same time, every krona tied up in operations requires funding and leaves less room for other investments. Assessing capital efficiency therefore starts with understanding what that capital contributes to the business.
In Capital Efficiency Outlook 2026, Knowit examines around 50 large Swedish listed companies, from raw materials and components to manufacturing and retail. This year’s report explores the relationship between working capital, returns and value creation.
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After two years of declining working capital intensity, the trend has reversed. Between the third quarters of 2025 and 2026, net operating working capital as a share of sales increased from 21.8% to 24.6%. Around three in four companies in the analysis recorded an increase.
Inventory accounted for the largest rise. At the median company, inventory days increased by twelve days, while customers paid five days later. Longer payment periods to suppliers partly offset these changes.
The increase needs to be assessed in the context of each business. Higher inventory may support growth or protect delivery reliability. The question is whether those benefits justify the capital required.
The analysis also shows that operating margins after tax are higher than before the pandemic, while returns on invested capital are lower. Companies earn more per krona of sales, but require more capital to generate those sales.
Capital efficiency is therefore an important part of profitable growth. A lasting reduction in working capital intensity releases cash today and reduces the additional funding needed as the business grows.
An illustration in the report puts the opportunity into perspective: if all companies achieved working capital efficiency in line with the top quartile within their part of the value chain, they could release cash equivalent to around 5% of annual sales. This illustrates the potential. What each company can release depends on its business model and delivery requirements.
Improvements endure when company targets shape product ranges, payment terms and daily routines. This requires collaboration across finance, sales, procurement and operations, supported by clear responsibilities and regular follow-up.
The starting point is to assess working capital as an investment. Which inventory protects profitable business? What availability are customers willing to pay for? And where is the company funding customer credit or complexity without adequate compensation?
Capital Efficiency Outlook 2026 explores these questions and shows how companies can translate the findings into decisions. Read the report for benchmarking insights, a client case and questions to help owners, boards and management teams prioritise their next steps.