2001 Working Capital Survey - Chart 31



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"

Overall RankCompany NamePrior Year SalesCash Conver. Effic.Days Working Cap.Days Sales Outst.Inven. TurnsDays Payable Outst.
54UST INC$1,54833%227971017142199837277
276PHILIP MORRIS COS$80,35613%2564843722172385416878
318R J REYNOLDS TOBACCO HOLD. INC$8,1678%4983025344256594996
703UNIVERSAL CORP$3,4026%6757163434304561223657
975STANDARD COMM. CORP$1,1061%90813794571815385543201
465Industry Average$18,91612% 73 30 3 25 

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