Analyst Insight: Although companies were able to reduce absolute inventory levels by 10 percent from Q3/2008 to Q3/2009, a closer look reveals that Days Inventory On-hand deteriorated by 7.5 percent, resulting in excess working capital requirements of $50bn for the largest 1,000 U.S.-headquartered public companies. If not regained, this lost efficiency will become a more significant cash drain than expected in 2010.