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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