French firms' cash conversion cycle stretches to 70 days as payment delays stay highest in Western Europe

Allianz Trade's 2025 report shows French companies need an average of 70 days to turn operating expenses into cash, matching the longest payment periods (DSO) in Western Europe. The cash conversion cycle (CCC) improved by three days from the previous year, mainly due to reduced inventory, but remains seven days above the regional average.

Globally, the CCC rose to 67 days in 2025, driven largely by higher inventory levels as firms shift from a just‑in‑time model to a just‑in‑case approach for resilience. Allianz Trade projects the French CCC to slip to 72 days in 2026, reflecting a modest deterioration.

The report highlights that inventory turnover now accounts for about 80 % of the CCC, indicating that larger stock holdings are tying up capital despite the liquidity gains from lower inventories.