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

December 29, 2013
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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.

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Raleigh, N.C.-based Sageworks, a leading provider of lending, credit risk, and portfolio risk software that enables banks and credit unions to efficiently grow and improve the borrower experience, was founded in 1998. Using its platform, Sageworks analyzed over 11.5 million loans, aggregated the corresponding loan data, and created the largest

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