2001 Working Capital Survey - Chart 6



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"

Over- all RankCompany NamePrior Year SalesCash Conver. Effic.Days Working CapitalDays Sales Outst.Inven. TurnsDays Payable Outst.
167LAFARGE CORP$2,78816%183363015256474725797
184VULCAN MATERIALS CO$2,49218%1335348047487933023668
258USG CORP$3,78113%26743386353161029718838
311OMNOVA SOLUTIONS INC$77310%4223630746465838441229
360NCI BUILDING SYSTEMS INC$1,01811%3275449046462742729489
489SHERWIN WILLIAMS CO$5,2129%4306256044431475332396
526OWENS CORNING$4,940-1%957109632276936255103
581VALSPAR CORP$1,4838%4846962368782651741236
605BUTLER MANUFACT- URING CO$9734%7444944746474934931404
620DAL TILE INTER- NATIONAL INC$95210%3608878542416385014917
621MASCO CORP$6,3079%4258373853574559314923
631NORTEK INC$1,9936%6346558649505649127530
647APOGEE ENTERPRISES INC$8405%6806256153575932821730
725GENLYTE GROUP INC$1,0088%5298877663722475136302
818LENNOX INTER- NATIONAL INC$3,2474%7717970759664560930441
902HUGHES SUPPLY INC$2,9951%9188575751547567627527
528Industry Average$2,5508% 60 49 7 31 

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