@ PelesTears- The article started to get into working capital management towards the end. The amount of working capital really depends on the type of business. Businesses usually try to have as little cash on hand as possible, yet still remain liquid. Cash does not earn money as it sits there; it actually decreases in value due to inflation.
Businesses manage working capital in a similar fashion. A business wants to have the maximum amount of money invested, but needs to be able to have adequate amounts on hand to cover immediate liabilities.
Businesses with high rates of inventory turnover like Wal-Mart or Target need less working capital than businesses with low inventory turnover like Caterpillar or Ralph Lauren. Additionally, businesses that only have seasonal manufacturing processes or are in cyclical markets (Fishery, auto manufacturer, etc.) may need higher levels of working capital than non-cyclical companies may.