Credit Risk Management

Wholesalers Thirst for Cash While Eyeing Debt

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AmerisourceBergen photo
Large stock market gains have largely by passed distributors. Above, an AmerisourceBergen distribution facility in Indiana.

Industry trends toward lower cash flow and higher debt are raising red flags with some of the world's largest wholesale distributors. 

With slim profit magins and low asset bases, few companies depend on efficiencies in operating cash flow and working capital more than wholesale distributors. But, improvements in working capital aren't necessarily translating into improved cash flow, according to newly released benchmark data from the Credit Standards Index (CSI), an index of credit data published by CreditPulse.

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