working capital
We tested working capital efficiency as a stock selection signal on 15 exchanges worldwide. 11 outperformed their local benchmark. 4 underperformed. 2 had too many cash periods to draw conclusions. Contents 1. The Signal 2. All 15 Exchanges 3. The Outperformers 4. UK: The Surprise Winner (+7.75%/yr vs
working capital
Canada produced the most defensive working capital efficiency portfolio across all 15 exchanges we tested. The max drawdown was -22.29%, roughly 7 percentage points shallower than the TSX Composite's -28.80%. Contents 1. Why Canada? 2. Methodology 3. The Numbers 4. The Drawdown Story 5. When It
working capital
Sweden produced a solid working capital efficiency portfolio. The CAGR of 8.80% outperforms the S&P 500 by 1.17% per year. The Sharpe ratio of 0.350 and max drawdown of -40.27% reflect Sweden's more volatile market. Contents 1. Why Sweden? 2. Methodology 3.
working capital
India produced strong absolute returns for working capital efficiency. Over 25 years, a portfolio of India's most capital-efficient companies returned 15.20% CAGR. The BSE Sensex returned 12.32% over the same period. That's +2.88% annual excess and a 60% win rate (15 out of
working capital
The UK produced the highest excess return of any exchange we tested for working capital efficiency. Over 25 years, a portfolio of the UK's most capital-efficient companies returned 8.87% CAGR. The FTSE 100 returned 1.13% over the same period. That's +7.75% annual excess
working capital
We tested working capital efficiency as a stock selection signal across the full US equity universe from 2000 to 2025. The result: 10.10% CAGR vs the S&P 500's 7.64%, with a down capture ratio of just 22%. For every dollar the market lost in