2001 Working Capital Survey - Chart 17



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.
185APRIA HEALTH- CARE GROUP INC$1,01416%16943389556121619420791
310HEALTH- SOUTH CORP$4,19517%1438272981881311007983
326HCA HEALTH- CARE CO$16,6709%44937315434291717315899
342HEALTH NET INC$8,7061%910(8)23161271324447164
392VENCOR INC NEW$2,6669%4314944660677605015900
496HEALTH MANAGE- MENT ASSOC.$1,57811%31975669838922810817859
513QUORUM HEALTH GROUP INC$1,7638%51058522708012114019802
531EXPRESS SCRIPTS INC$6,7874%7314035355611467323667
579CARE- MARK RX INC$4,430-2%96711108241861816332398
604TENET HEALTH- CARE CORP$11,4146%66658523748372711323671
637PHYCOR INC$1,51610%4198575892929555611958
651BEVERLY ENTERPR. INC NEW$2,6263%7994944156621516512941
671PEERLESS TUBE CO$14,381-3%98416145211682,427222704
773MARINER POST ACUTE NETWORK INC$2,1181%9255348270799674221754
832SUN HEALTH- CARE GROUP INC$2,5290%9416154465741575410967
854GENESIS HEALTH VENTURES INC$2,4341%88875668798672412917856
867DAVITA INC$1,4456%674102848115979329720773
980GENTIVA HEALTH SERVICES INC$1,507-5%9931189041229831422624646
586Industry Average$4,8775% 56 66 167 20 

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