In its “Working Capital Report,” NCAR found on average, arts and culture organizations had working capital equivalent to five months’ worth of total expenses. While this might seem like a comfortable cushion, it reflects very high levels of working capital concentrated among a minority of institutions. Working capital levels varied by arts and cultural sectors. Skewed by large institutions, art museums had average working capital of more than one year, while orchestras on average had only approximately 15 days of working capital.
Overall, NCAR’s research showed that the majority of arts and culture organizations are cash-strapped. Average working capital for performing arts organizations, as well as for half of the museums, is equivalent to fewer than two months of total expenses.
Source: NCAR Blog