What is the appropriate working capital for your clients’ industry?

Posted by Sageworks

In this brief video, Peter Brown, Sageworks senior consultant, discusses positive versus negative working capital. He notes that manufacturers, wholesalers, and most retailers typically have positive working capital, or a current ratio in excess of 1:1. On the other hand, restaurants, hotel, airlines, and many utilities have negative working capital, or a current ratio less than 1:1.

This clip is from a Sageworks’ webinar for accountants and CPAs entitled “How to Help Business Clients Win Loans.” In this webinar, Brown points out that social media and emails should not replace face-to-face interaction when approaching a prospective client.  Watch the full on-demand webinar.

tags: accountant, Accounting, accounting services, CPA as a business advisor