Using the formula sales / working capital, the working capital turnover ratio shows how a contractor utilizes its capital to make sales. A high ratio could imply a lack of capital to sustain sales growth, whilst a low ratio could indicate that working capital is being used inefficiently. Contractors with a lower fast ratio may find it difficult to meet their obligations without selling goods.
Before ditching QuickBooks Online, construction firms must carefully evaluate their growth-driven needs. Supplementing QBO with specialized apps like Knowify and Hammr can bridge functional gaps effectively, often providing better value than switching entirely to a complex ERP system.
Read MoreThe “Big Beautiful Bill” pairs permanent tax breaks with a climate-smart infrastructure surge. RedHammer explains how modular workflows, automated certified payroll, new workforce grants, and careful cash-flow planning can turn strict federal compliance into margin and help contractors lock in the first, best-priced projects.
Read MoreConstruction M&A is surging as PE capital and infrastructure funds chase niche contractors, while aging owners face succession gaps. This article compares ESOP exits versus PE/strategic sales, details buyer criteria and risks, and gives a readiness checklist powered by RedHammer expertise.
Read MoreExplore how AI is revolutionizing construction—from smarter bidding and automated takeoffs to real-time safety monitoring and predictive scheduling. This guide breaks down key AI concepts and showcases tools that enhance efficiency, safety, and profitability.
Read More
.png){kind=small}
