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2001 Working Capital Survey - Chart 3

CHEMICALS

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"

CHEMICALS
Over- all RankCompany NamePrior Year SalesCash Conver. Effic.Days Working Cap.Days Sales Outst.Inven. TurnsDays Payable Outst.
CCERk.DWCRk.DSORk.Ts.Rk.DPORk.
100EASTMAN CHEMICAL CO$5,29216%174111035154374287930
142AIR PRODUCTS & CHEM. INC$5,46721%835851865743936037281
183PRAXAIR INC$5,04319%1096154567759933129482
235CABOT CORP$1,51717%161605337684847558029
250GEORGIA GULF CORP$1,58212%2863832844432933640242
261GREAT LAKES CHEM. CORP$1,67126%3912291579863383135339
291GEON CO$1,2618%4862521128225838242214
302IMC GLOBAL INC$2,09616%1717466137342473735318
305SOLUTIA INC$3,18513%2515650752553747939254
307MINERALS TECH.INC$67117%1478071964729746121729
312AVERY DENNISON CORP$3,89411%3204742952556932430440
351ALBE- MARLE CORP$91818%1369180067765560025594
375E I DU PONT DE NEMOURS & CO$28,26817%1588979064734474834358
384ECOLAB INC$1,82916%1678979175843476027542
411SINOPEC SHANGHAI PETRO- CHEMICAL CO$1,69515%2098373922170565811950
418INTER- NATIONAL SPEC. PRODUCTS$78415%1978776748495383028504
432ROHM & HAAS CO$6,87915%2048676380877566846171
433DOW CHEMICAL CO$23,00812%2996861249507558633367
463SPARTECH CORP$9619%4635449554584836835330
469SINOPEC BEIJING YANHUA PETROCHEM$78012%308726422520265162998
476STEPAN CO$6998%49253483505381030427536
509CYTEC INDUS. INC$1,49310%3637264863721744327534
516ENGEL- HARD CORP$5,5435%69341373322741127418837
517N L INDUS. INC$92211%350746665559938616471
549OLIN CORP$1,5499%4646761044447654630426
550LUBRIZOL CORP$1,77613%2639180363717566928526
553GENTEK INC$1,4148%5246356659661839432386
557RHODIA$5,5408%4776760355613470648150
559W R GRACE & CO NEW$1,4727%5945851555601745929465
613FERRO CORP$1,4478%5317163762700651534342
615ETHYL CORP$84414%23710787563714478127533
622BASF AG$33,74810%4068474862698569029485
630ARCH CHEM. INC$9418%4827769565738471349143
634KOPPERS INDUS. INC$6647%5577264344440655526571
672LYONDELL CHEMICAL CO$4,0369%4358877962710565353113
683H B FULLER CO$1,3536%6457063364723652135331
699MACDERMID INC$75611%3599983878858476229469
734FOAMEX INTER- NATIONAL INC$1,2801%89551460576271031640247
769CROMPTON CORP$3,0386%6118777349506384537288
789PHARMACIA CORP DE$18,14410%37111389083889294826574
811HERCULES INC$3,2489%44711088592930472835332
817VALHI INC$1,1929%43911188658649382724655
824ANDERSONS INC$9700%9296255519153566626561
844AKZO NOBEL NV$14,46810%3841239207181747501999
845MILLEN- NIUM CHEMICALS INC$1,7934%7528878452555564427541
853B F GOODRICH CO$4,3647%59310787766756481134357
864NCH CORP$7285%7129782970802477623687
870A SCHULMAN INC$1,0335%7139883157630564722690
876RPM INC$1,9546%62110988076846475917855
906TERRA INDUS. INC$7662%873917994748847355991
940SIGMA ALDRICH CORP$1,09616%17019699167761199018840
551Industry Average$4,21711% 79 58 6 33 



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