The Republic came out best in a survey on the efficient use of working capital by 1,000 top European public companies.

However, the survey, conducted by a working capital consultancy group REL, found that "even in Ireland, which tops the European league for management of total working capital", there was still more than €1.8 billion of excess working capital.

This figure, according to the consultants, is cash which is tied up because of inefficiencies. It represents profits forgone of approximately €180 million.

Mr Christopher Bielenberg, chief executive of REL, said the reason the Republic came out so well in the survey was most likely because Irish companies were, in general, younger than their heavy manufacturing counterparts elsewhere in Europe.

Companies "which have a lot of baggage" were likely to have less-efficient processes, he said. The consultants analysed working capital and how money is tied up in unbilled and uncollected debts, unsold inventories and the early payment of suppliers.

More than €650 billion in cash was tied up by such inefficiencies in the top European companies surveyed, according to the consultants.

While the Republic "signficantly outperformed its major Europe competitors", it still had 17 per cent excess working capital, the consultants found.

The consultants measured the amount of working capital tied up in inefficiencies and the percentage of working capital which would be released if the company was in the top 25 per cent of companies in its sector. The lower the percentage, the better the score.

The average for Europe was 31 per cent, with the Republic scoring 17 per cent. Worst was Greece, which scored 41 per cent. Of the 15 Irish companies surveyed, United Drug and IAWS scored best, with 0 per cent, and Fyffes scored worst, at 70 per cent.