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Springfield, OH | It just depends on what stage you’re at in my opinion. When I was getting started with basically nothing I ran the first 10 years a lot of the time with negative working capital but I was aggressively scaling. Sometimes I’ll run lean now but it’s due to funding something that should be termed out from short term I.e. a grain bin. On average I’m probably 20-25% of gross sales. I’m also still aggressively investing in infrastructure. If you’re on cruise control, scaled where you want to be, with the infrastructure in place and running 20% or less I’d be worried. I’m talking working capital to gross sales not borrowed capital.
Edited by Northforkfarm 2/14/2024 15:55
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Operating Credit As Percentage Of gross Income
