A five-year average (1960-1964) of current ratio stands at 4.56 for hardware stores, 1.95 for grocery stores, 4.11 for cotton cloth mills and 1.70 for building construction contractors. Note the variation between types of retailer and manufacturer. These industry standards are not unhealthy. Another interesting ratio is fixed assets (depreciated book value) per tangible net worth. Five year percentages for this ratio are 5.7% for manufacturers of womens' coats, 80.1% for manufacturers of bakery goods, 59.9% for grocery stores and 10.2% for furniture stores. In general, this ratio is best kept low for new businesses, which should rent land and buildings until the future of the business is ensured. Experience has shown that small businesses should attempt not to exceed 66% and large businesses should avoid exceeding 75% [Foulke,1968].
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