Bengaluru, Aug 26: Aon plc, a global professional services firm, today released findings from its 2026 Working Capital Benchmarking Report, which found that Indian businesses recorded the largest improvement in working capital performance across Asia Pacific, reducing average days receivable by eight days year-on-year to 56 days. The findings demonstrate how more effective receivables management may impact improved cash flow and create greater financial flexibility as financing costs remain elevated.
The report analysed audited financial data from 3,805 publicly listed companies across 14 markets and 21 industries in APAC. Average days receivable across the region remained unchanged at 79 days in 2025, while India recorded the largest improvement among the markets analysed.
“Days receivable” measures the average time a business takes to collect payment after delivering goods or services. Shorter collection periods can improve liquidity, strengthen balance sheets and help organisations fund expansion and operational priorities more efficiently.
Payment collection periods varied significantly across the region. India’s average of 56 days was well below the APAC average of 79 days and lower than several major regional markets, including China at 99 days, Hong Kong at 76 days and Singapore at 73 days. At the other end of the spectrum, New Zealand recorded the shortest collection period at 41 days, followed by Vietnam at 45 days and Australia at 48 days.
“India’s progress shows the opportunity for businesses to release more cash from their operations and put it toward growth,” said Sushant Sarin, Managing Director and Head of Commercial Risk Solutions, India, Aon. “For CFOs and treasurers, benchmarking receivables performance against industry peers can identify where capital is tied up and inform decisions that strengthen financial flexibility and resilience.”
Indian Industries Lead Improvements Across APAC
Several Indian industries ranked among the strongest performers across APAC in reducing days receivable over the past year. India’s engineering and construction sector recorded the region’s largest improvement, reducing days receivable by 28 days, from 125 days in 2024 to 97 days in 2025. The chemicals sector reduced days receivable by 24 days to 67 days, while construction materials and pharmaceuticals each recorded reductions of 13 days. Electrical products improved by 11 days and information technology by nine days.
“Businesses can build on these results by combining stronger receivables management with tools such as credit insurance-backed financing,” said Steve Taylor, Deputy Global and Asia Head of Credit Solutions, Aon. “These improvements show how businesses can unlock working capital through better receivables management and credit solutions, creating greater flexibility to navigate an increasingly complex operating environment,” added Taylor.