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2001 Working Capital Survey - Chart 18

HOME CONSTRUCTION & FURNISHINGS

1Jul


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"

HOME CONSTRUCTION & FURNISHINGS
Over- all RankCompany NamePrior Year SalesCash Conver. Effic.Days Working CapitalDays Sales Outst.Inven. TurnsDays Payable Outst.
CCERk.DWCRk.DSORk.Ts.Rk.DPORk.
218HERMAN MILLER INC$1,93813%27331259414032611619799
221HON INDUSTRIES INC$2,0469%44211104393671718443202
301STEELCASE INC$3,31612%27951459535791619018845
322ETHAN ALLEN INTERIORS INC$85612%2845549817137387428510
362MAYTAG CORP$4,24811%3375448743430842124628
546KIMBALL INTER- NATIONAL INC$1,2017%6075549647478841326564
577WHIRLPOOL CORP$10,3256%6305650558642744440246
688LEGGETT & PLATT INC$4,27610%3709682254590564515907
758BLACK & DECKER CORP$4,5618%5089581964731476629475
800INTERFACE INC$1,2846%6688777458647568926575
829HARMAN INTER- NATIONAL INDUST. INC$1,6788%47310988371814477731420
834FURNITURE BRANDS INTNL. INC$2,1167%60010184460682562612939
885LA Z BOY INC$1,7175%69910485779868743215905
981SUNBEAM CORP NEW$2,398-4%98712893468786383332383
987PILLOWTEX CORP$1,5522%83318899087913292843199
621Industry Average$2,9018% 81 56 8 27 



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