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Working capital needs during growth phase & key metrics

  • 1.  Working capital needs during growth phase & key metrics

    Posted 09-21-2022 16:24

    Hi all,

    I have been working on reviewing key ratios and comparing to the industry benchmarks and thought to pose a few questions on here.  

    We are a roughly $200M self-perform sub in the midst of a significant growth phase.  We are seeing a large ramp up in working capital during this growth. I'm curious if other specialty self perform subs out there are in-line with the CFMA metric on working capital turnover (10.6) for companies this size.  Ours has grown from 7-8.5% YTD and is quickly rising...  At what point might one expect this level off?  Does it take time after sales growth levels off? Looking for any and all feedback...

    I'm still working through all the other metrics too, and if you can opine on others as well, feel free.

    Thanks in advance!



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    Tracy Hawthorne CPA
    Director of Finance & Accounting
    Donley's, Inc.
    Valley View OH
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