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Conclusion

A good working capital ratio varies from business to business. But in general, it’s smart to aim for somewhere between 1.5 and 2.0. You can use these guidelines to make financial decisions that optimize your business’s working capital ratio.

Now that you know the meaning of a good  working capital ratio for your business, you might like to learn more about working capital financing options. Visit our page about the best working capital loans to find out more.

 

About the Author

Sarah Sharkey

Sarah Sharkey

Personal Finance Writer

Sarah Sharkey is a personal finance writer who enjoys helping people make better financial decisions. Sarah enjoys traveling, hiking and reading when she is not writing.

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