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Where Working Capital Is Highest — and Lowest

iCFO Finsights — benchmark insights for advisors and financial professionals.

Business advisors often hear:

“Is our working capital healthy?”

The answer depends entirely on the industry.

Based on analysis of 1M+ U.S. companies in the iCFO database, median working capital ratios vary dramatically:

Industries with the Highest Working Capital:

  • Libraries & Archives
  • Labor Unions
  • Museums
  • Grantmaking Foundations
  • Securities Brokerage

Median ratios in these sectors range from4.2 to nearly 9.0.

These organizations often operate with advance funding, reserves, and conservative balance sheets.

Industries with the Tightest Working Capital:

  • Hotels
  • Amusement & Theme Parks
  • Bed-and-Breakfasts
  • Car Rental
  • Limited-Service Restaurants

Median ratios here range from0.64 to 0.90.

These are asset-intensive, payroll-heavy businesses where tight liquidity is structural — not necessarily mismanagement.

📌Bottom line:

Working capital norms are industry-driven.

Benchmarking without context leads to misleading conclusions.

If you’re mentoring, advising, or coaching business owners, industry-adjusted context matters.

📊Want size- and industry-based benchmarks?

Create a free account and generate your own 1-Year Industry Report here:

👉https://secure.icfo.pro/industry-metrics/build-free-industry-report/1-year

Your report breaks performance into size groups and peer percentiles — the same methodology used in our Finsights series.

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