iCFO Finsights: Where Profitability Meets Financial Strength

The conventional assumption is that businesses have to choose: chase high returns or maintain a strong balance sheet. Benchmarking data across 1M+ U.S. private companies shows that in several sectors, that tradeoff simply does not exist. 

Certain industries consistently combine strong earnings power with solid liquidity — producing a financial profile that is both high-performing and resilient. For advisors, these sectors represent a benchmark worth showing every client who thinks profitability and financial strength are in tension. For investors, they signal where operational quality and balance sheet discipline tend to coexist at scale. 

We identified these clusters using Return on Asset Investment (ROAI) — which measures operating earning power independent of taxes and financing structure — alongside the Current Ratio as a liquidity indicator. Learn more about ROAI → 

Professional Services 

Legal, Accounting, Consulting & Marketing Services (NAICS 5411xx / 5412xx / 5416xx / 5418xx) 

  • ROAI: ~22% to 42%  |  Current Ratio: ~1.8 to 3.0+ 

Professional services dominate this list for a structural reason: low asset intensity, high margins, and flexible cost structures that move with revenue. These businesses generate strong returns without heavy capital commitments, and their liquidity positions reflect it. For PE, this combination — asset-light, high ROAI, current ratio above 2.0 — is what makes professional services platforms attractive as both standalone acquisitions and add-on targets. 

Construction 

Residential & Specialty Trade Contractors (NAICS 2361xx / 238350) 

  • ROAI: ~33% to 46%  |  Current Ratio: ~1.7 to 2.0 

Construction’s appearance here surprises some advisors — it is typically viewed as capital-intensive and cash-constrained. But residential and specialty trade contractors often benefit from progress billing, upfront deposits, and project-based cash flow timing that supports both returns and working capital. The key distinction is between firms that manage billing cycles actively and those that do not — the liquidity gap between the two is significant. 

Business & Facility Services 

Administrative, Cleaning, Security & PEO Services (NAICS 561xxx) 

  • ROAI: ~31% to 44%  |  Current Ratio: ~1.7 to 2.4 

Recurring revenue models and limited capital requirements make this cluster structurally attractive. These businesses convert revenue to earnings efficiently and maintain liquidity without significant reinvestment demands. The range within this sector is wide, however — ROAI and current ratio vary meaningfully depending on contract concentration, client mix, and whether the firm operates as a pure service provider or carries equipment and facilities. 

Creative & Media 

Advertising, Publishing & Creative Services (NAICS 5418xx / 5111xx / 7115xx) 

  • ROAI: ~20% to 40%  |  Current Ratio: ~2.0 to 3.1 

Intellectual capital scales without proportional balance sheet growth — which is exactly why creative businesses produce strong ROAI alongside current ratios that would be difficult to achieve in asset-heavy sectors. The liquidity positions here also reflect favorable billing dynamics: retainer-based revenue and upfront project payments improve working capital structurally, not just in good years. 

Healthcare Services 

Offices of Chiropractors (NAICS 621310) 

  • ROAI: 31.4%  |  Current Ratio: 3.6 

A current ratio of 3.6 alongside a 31% ROAI is a rare combination in any sector. Chiropractic practices benefit from steady, recurring patient demand, low fixed asset requirements relative to revenue, and direct or insurance-based billing that supports consistent cash flow. This profile makes them an outlier in healthcare — most clinical settings carry far tighter liquidity — and an instructive benchmark for what operational discipline looks like in a service-based practice. 

What this means for advisors and investors 

These sectors share a common thread: they generate strong returns without requiring heavy capital deployment, and they maintain liquidity buffers that provide genuine resilience under stress. That combination is rarer than it looks — most industries trade one for the other. 

For advisors, the practical implication is straightforward. When a client in one of these sectors shows a weak current ratio or below-peer ROAI, the question is not whether improvement is possible — the industry benchmark says it is. The question is what is preventing it. For investors, these sectors offer something valuable in a deal context: evidence that the best operators in the space have already solved the profitability-liquidity tradeoff. The gap between median and top-quartile performance is where the opportunity lives. 

iCFO benchmarks both ROAI and liquidity across 2,500+ industries, so you can identify exactly where a business stands — and what the best firms in its sector actually look like. 

Explore Benchmarks at iCFO.pro 

Source: FINTEL, LLC — analysis of 1M+ U.S. companies using firm-level financial data. 

This analysis is part of the iCFO Finsights series, an ongoing benchmark initiative for advisors and investors.