The chart shows working capital as a percentage of total assets for 18 business sectors.
The BizStats data gives the each percentage for cash, accounts receivables, inventory, and accounts payable of the total assets. To determine the percentage of working capital to total assets, the accounts payable percentage was subtracted from the total of the percentages for cash, accounts receivable, and inventory.
This survey data should be useful by comparing a company’s working capital as a percentage of total assets to the number on the graph that represents the company’s business sector. A deviation from the graph number suggests analysis should be done to determine if the company’s working capital needs adjusting.
Click here to go to the BizStats data that was used to create the chart.