The Hackett Group Reports 4% Revenue Increase in 2024, Driven by Semiconductor and Internet Software Growth
The Hackett Group Inc. reported a 4% revenue increase for 2024, driven by significant growth in semiconductors (28%) and internet software (14%). EBITDA margin improved to 19%, and operating cash flow rose to 16% of revenue. Capital expenditures increased by 5% as firms invested in AI and supply chain resilience. The cash conversion cycle improved by 4% to 37 days, although days sales outstanding and inventory showed slight declines. $1.7 trillion remains trapped in excess working capital, highlighting the need for optimization in financial practices.
The Hackett Group Inc., a leading consultancy and executive advisory firm, has released findings from its 2025 U.S. Working Capital Survey. The report highlights a 4% increase in aggregate revenue for 2024, largely driven by innovation-led sectors such as semiconductors, which saw a substantial 28% growth, and internet software and services, with a 14% rise. Earnings before interest, taxes, depreciation, and amortization (EBITDA) margin improved by 6%, reaching 19%, attributed to cost optimization efforts. Operating cash flow as a percentage of revenue enhanced to 16%, supported by reduced costs of goods sold and improved working capital practices. Capital expenditures rose by 5% as companies focused on investments in AI infrastructure and supply chain resilience. The survey also reveals a 4% improvement in the cash conversion cycle, now at 37 days, after a year of deterioration. This rebound was driven by a 3% improvement in days payable outstanding, presenting new opportunities to unlock liquidity amidst ongoing uncertainty. However, both days sales outstanding and days inventory outstanding showed slight deteriorations. The report notes that $1.7 trillion remains trapped in excess working capital, representing 35% of gross working capital and 11% of aggregate revenue. The findings underscore the strategic importance of optimizing payables, receivables, and inventory to enhance liquidity and support growth, with generative AI emerging as a valuable tool in addressing working capital inefficiencies. Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. The Hackett Group Inc. published the original content used to generate this news brief via Business Wire (Ref. ID: 20250818205819) on August 18, 2025, and is solely responsible for the information contained therein. © Copyright 2025 - Public Technologies (PUBT)
