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2001 Working Capital Survey - Chart 27

PHARMACEUTICALS & BIOTECH

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"

PHARMACEUTICAL & BIOTECHNOLOGY
Over- all RankCompany NamePrior Year SalesCash Conver. Effic.Days Working CapitalDays Sales Outst.Inven. TurnsDays Payable Outst.
CCERk.DWCRk.DSORk.Ts.Rk.DPORk.
16AMGEN INC$3,62941%125448945452295314918
65SCHERING PLOUGH CORP$9,81524%533731342415297042213
77ELI LILLY & CO$10,00328%296961767766295636300
109MERCK & CO INC$40,36319%1133226846460650245182
130QUEST DIAGNOS- TICS INC$3,42111%352(8)206574434918128
140BRISTOL MYERS SQUIBB CO$18,21625%468272874835294634341
169JOHNSON & JOHNSON$29,13921%777062556622388927543
194PFIZER INC$29,57421%807365962701295421760
319FOREST LABORA- TORIES INC$88216%1867365831268199432397
446GENZYME CORP$90321%9012291678856295212943
466GENENTECH INC$1,27821%8112792858651199614915
534NOVARTIS AG$20,28120%10113093873830198620787
544WATSON PHARMA- CEUTICALS INC$81211%333807186574529645894
573COVANCE INC$8688%51267604677692015013927
750PERRIGO CO$7396%6727970837343476930425
763CARTER WALLACE INC$7487%5559280465739389622717
794AMERICAN HOME PRODUCTS CORP$13,26311%30912191285904297919822
835MYLAN LABORA- TORIES INC$79016%1821559678690629438974
837IVAX CORP$79310%40212090966747390526566
865ICN PHARMA- CEUTICALS INC NEW$64514%217153965114976296538267
963ALPHARMA INC$9208%540162973103957293826555
994MONSANTO CO NEW$5,2481%890206992138989298240251
481Industry Average$8,74216% 95 69 5 30 



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