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2001 Working Capital Survey - Chart 33

TRAVEL

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"

TRAVEL
Overall RankCompany NamePrior Year SalesCash Conv. EfficiencyDays Working Cap.Days Sales Outst.Inven. TurnsDays Payable Outst.
CCERk.DWCRk.DSORk.TurnsRk.DPORk.
34SOUTH- WEST AIR- LINES$5,65022%72(6)30769378618834
101ALASKA AIR GROUP$2,17715%207461131102014719800
105UAL CORP$18,02715%1881094241872810722716
124AMR CORP$16,64415%19119157282271323524654
132AMERICA WEST HOLD.$2,34413%275463201632512323673
173AMTRAN INC$1,29213%2592118514119171824993
223NORTH- WEST AIR- LINES$10,27610%41116140231831520321742
251US AIRWAYS GROUP$9,26910%41224201151221127011946
143Industry Average$8,21014% 11 18 21 18 



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