2001 Working Capital Survey - Chart 8



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.
256GILLETTE CO$9,29515%190595279293139218823
452HERBALIFE INTER- NATIONAL INC$9447%568443961310939177980
461AVON PRODUCTS INC$5,7157%5904338734297479228507
603PLAYTEX PRODUCTS INC$8318%4957365658645473021721
606ESTEE LAUDER COS INC$4,3679%4627668948503298020763
680ALBERTO CULVER CO$2,2475%6816660126206293334354
866INTER- NATIONAL FLAVORS & FRAGRANCES INC$1,46316%17916297173833297118854
959REVLON INC$1,492-4%9889380969788389423658
991APPLICA INC$749-1%965175982102955389523679
653Industry Average$3,0117% 88 57 3 29 

Back to the 2001 Working Capital Survey


Read next:

Finance At BeyondCore