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

Sageworks
Posted by Sageworks
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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