2001 Working Capital Survey - Chart 23



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.
111NEW YORK TIMES CO$3,48918%1382319740379447520768
128WASHING- TON POST CO$2,41213%25756844436763842217
133TRIBUNE CO$4,91021%865348568778378521738
150DOW JONES & CO INC$2,20316%1663428944434863212944
152GANNETT CO INC$6,22217%15238331555972611824652
155VALASSIS COMMUNI- CATIONS INC$83515%21225215474761718136308
175MCCLATCHY CO$1,14215%2023428857634358829479
207E W SCRIPPS CO OH$1,71915%2163934761690398226587
229KNIGHT RIDDER INC$3,21213%2473832649514339417861
241MEREDITH CORP$1,09713%25841367495161224920780
354MCGRAW HILL COS INC$4,28118%1309481594939557430442
383SCHOLAS- TIC CORP$1,40315%1968273341397391630437
447PRIMEDIA INC$1,6916%63637319556041226125592
475READER S DIGEST ASSOC- IATION INC$2,5546%6184338046466935421743
545HOLLINGER INTER- NATIONAL INC$2,0963%7803630353581378422697
576HOUGHTON MIFFLIN CO$1,02815%21510586558640293619804
629AMERICAN GREETINGS CORP$2,1759%4617971166757385930452
697HARTE HANKS INC$9611%9114338266755932726558
820MEDIA GENERAL INC$831-2%97845407555952811117871
348Industry Average$2,33012% 47 55 31 25 

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