Last quarter nearly threw me off — I had inventory sitting longer than expected, while bills just kept rolling in. I thought I was okay financially, but then realized I hadn’t even looked at my working capital ratio in months. I remember someone here said they started tracking that and it helped turn things around. If that was you, what did you use to figure it out, and how do you know you’re in the “safe zone”?
Yeah, that was probably me. I was in the same boat — too much inventory, not enough liquidity. I finally sat down and read through this: learn about working capital ratio interpretation. It broke things down in a way that actually made sense. Once I started watching my ratio monthly, I caught issues before they blew up. It helped me tighten up cash flow, spot dead stock early, and even negotiate better terms with one supplier.
It’s wild how one number can reveal so much about your business health. I used to think ratios were just for accountants, but the working capital ratio honestly gave me a better grip on how much wiggle room I really had. And in retail, where one slow week can knock you back, that insight makes all the difference.