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.