Net working capital
Vestas’ net working capital at 31 March 2011 amounted to EUR 910m, against EUR 593m at the end of March 2010. Prepayments, which include payments on account for turbine projects that have not yet been recognised and prepayments on orders, declined due to the modest order intake and the low number of shipments.
Inventories have declined notably over the past year in step with the handing over of a number of projects, whereas there has been an increase in trade payables. During the first quarter, net working capital rose by EUR 238m, driven primarily by a reduction of trade payables, whilst the decline in prepayments is offset by a corresponding drop in inventories. Vestas is working on structurally to further reduce its inventories.
