Inventories and work in progress are recognised at their cost of acquisition or of production by the entity. At each balance sheet date, they are measured at the lower of cost and net realisable value.
Trade receivables are current financial assets and are initially measured at their fair value, which is generally their nominal value, barring any discounting effect. The Group uses the simplified approach as defined by IFRS 9, and therefore records impairment on its trade receivables to correspond with the expected credit loss at maturity.
At each balance sheet date, trade receivables are measured at their amortised cost less any impairment losses in the event of any non-recovery risks. The assessment of that risk takes into account payment delays and guarantees obtained.
The Group’s business model is to retain its trade receivables in order to collect the contractual cash flow when they fall due. However, in some cases, receivables may be assigned to third parties (banks) on terms that meet IFRS 9 criteria, i.e. contractual cash flows along with substantially all of the related risks and rewards are assigned. In those cases, the receivables are derecognised.
Trade payables are current financial liabilities and are initially measured at their fair value, which is generally their nominal value, barring any discounting effect. Some Group entities have set up reverse factoring arrangements. These allow Group suppliers to assign their receivables to a third party before they fall due, and thereby receive payment earlier.
| (in € millions) | 31/12/2025 | 31/12/2024 | Changes | |||
|---|---|---|---|---|---|---|
| Change in operating WCR | Changes in consolidation scope | Other changes(*) | ||||
| Inventories and work in progress (net) | 1,700 | 1,772 | (134) | 91 | (29) | |
| Trade and other receivables | 19,504 | 19,365 | (151) | 592 | (301) | |
| Other current assets | 8,265 | 8,333 | 103 | 310 | (480) | |
|
Non-operating assets |
(58) | (21) | (39) | 1 | 1 | |
| Inventories and operating receivables |
I |
29,412 |
29,449 |
(222) |
994 |
(810) |
| Trade payables | (14,868) | (14,463) | (300) | (366) | 261 | |
| Other current liabilities | (25,612) | (24,144) | (1,463) | (443) | 438 | |
|
Non-operating liabilities |
1,840 | 1,885 | 163 | (69) | (139) | |
| Trade and other operating payables |
II |
(38,639) |
(36,723) |
(1,599) |
(877) | 559 |
| Working capital requirement (excluding current provisions) |
I + II |
(9,227) |
(7,274) |
(1,821) |
117 | (250) |
| Current provisions |
(8,353) |
(7,828) |
(675) |
(85) |
235 |
|
| of which part at less than one year of non-current provisions | (105) | (121) | 19 | (4) | (0) | |
| Working capital requirement (including current provisions) |
(17,580) |
(15,101) |
(2,496) |
32 |
(15) |
|
Some Group entities, mainly in the Cobra IS business line, make use of agreements to assign accounts receivable and reverse factoring arrangements. At 31 December 2025, the amount of trade receivables assigned without recourse and derecognised was €126 million (€131 million at 31 December 2024).
The amount of receivables assigned by suppliers as part of reverse factoring arrangements was €556 million at 31 December 2025 (€494 million at 31 December 2024), of which €212 million was paid by financial institutions to suppliers. As those reverse factoring transactions are not intended to increase the amount of time taken to pay suppliers, the liabilities are retained under operating liabilities.
