2001 Working Capital Survey - Chart 11



Behind the Rankings

The management of working capital combines two measures, weighted equally:
1. Days of Working Capital (DWC) = (Receivables + Inventory ­ Payables) ÷ (Sales ÷ 365 Days). If payables exceed the sum of receivables and inventory, DWC is negative.
2. Cash Conversion Efficiency (CCE) = Cash Flow from Operations ÷ Sales.

The overall ranking: (Highest Overall CCE ­ Company CCE) ÷ (Highest Overall CCE ­ Lowest Overall CCE) + (Lowest Overall DWC ­ Company DWC) ÷ (Lowest Overall DWC ­ Highest Overall DWC). Days of Sales Outstanding (DSO), Inventory Turns, and Days of Payables Outstanding (DPO) are not part of the overall ranking criteria. Industry averages consider all companies in an industry, not just the top five.

Sources: REL Consultancy Group, Piranha Web

Back to "Forget the Float? — The 2001 Working Capital Survey"

Over- all RankCompany NamePrior Year SalesCash Conver. Effic.Days Working CapitalDays Sales Outst.Inven. TurnsDays Payable Outst.
18TELSTRA CORP LTD$11,02434%2121181667532611550134
38QWEST COMMUNI- CATIONS INTER- NATIONAL INC$16,61029%2841370606731717833379
63BROADWING INC$2,05023%6029246647272313042209
69ALLTEL CORP$7,06723%633328257629479433368
78CITIZENS COMMUNI- CATIONS CO$1,80219%1141614152565359039256
156SPRINT CORP$23,61317%14241369606791520632388
239VIDESH SANCHAR NIGAM LTD$69,87214%238443941179812,62217342
390STAR TELECOMM- UNICATIONS INC$1,0621%87635552563850431412
890MCLEODUSA INC$1,397-7%99636306798652412751124
216Industry Average$14,94417% 29 67 402 43 

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