2001 Working Capital Survey - Chart 34



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. EfficiencyDays Working CapitalDays Sales Outst.Inven. TurnsDays Payable Outst.
3PAGING NETWORK INC$99016%181(233)22823432982663
29U.S.CELL- ULAR CORP$1,71726%40884444441521244195
170WESTERN WIRE- LESS$83517%1514540144445132307985
178ARCH WIRE- LESS$85113%2522420440381437621736
404NEXTEL COMMUNI- CATIONS$5,7143%8241111162702132437245
157Industry Average$2,02115% -29 44 23 82 

Back to the 2001 Working Capital Survey


Read next:

Finance At BeyondCore