2001 Working Capital Survey - Chart 32



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.
163PACCAR INC$7,9198%497(11)16251991816154108
303GREEN- BRIER COS$6195%68610933329356228526
491TRINITY IND. INC$2,7417%5844944250523651250131
563STEWART & STEVENSON SRVS. INC$91215%21110485869790560131422
664OSHKOSH TRUCK CORP$1,3245%6846457630262558925588
670WESTING- HOUSE AIR BRAKE TECH- NOLOGIES CORP$1,1219%4668474955594557326565
715WABASH NATIONAL CORP$1,3324%7356559123179566731408
717CUMMINS ENGINE CO$6,5975%6977062848500746421732
775FEDERAL SIGNAL CORP$1,1067%6048979458650566023662
562Industry Average$2,6307% 58 43 7 39 

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