2001 Working Capital Survey – Chart 3

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”

CHEMICALS
Over- all Rank	Company Name	Prior Year Sales	Cash Conver. Effic.		Days Working Cap.		Days Sales Outst.		Inven. Turns		Days Payable Outst.
Over- all Rank	Company Name	Prior Year Sales	CCE	Rk.	DWC	Rk.	DSO	Rk.	Ts.	Rk.	DPO	Rk.
100	EASTMAN CHEMICAL CO	$5,292	16%	174	11	103	51	543	7	428	79	30
142	AIR PRODUCTS & CHEM. INC	$5,467	21%	83	58	518	65	743	9	360	37	281
183	PRAXAIR INC	$5,043	19%	109	61	545	67	759	9	331	29	482
235	CABOT CORP	$1,517	17%	161	60	533	76	848	4	755	80	29
250	GEORGIA GULF CORP	$1,582	12%	286	38	328	44	432	9	336	40	242
261	GREAT LAKES CHEM. CORP	$1,671	26%	39	122	915	79	863	3	831	35	339
291	GEON CO	$1,261	8%	486	25	211	28	225	8	382	42	214
302	IMC GLOBAL INC	$2,096	16%	171	74	661	37	342	4	737	35	318
305	SOLUTIA INC	$3,185	13%	251	56	507	52	553	7	479	39	254
307	MINERALS TECH.INC	$671	17%	147	80	719	64	729	7	461	21	729
312	AVERY DENNISON CORP	$3,894	11%	320	47	429	52	556	9	324	30	440
351	ALBE- MARLE CORP	$918	18%	136	91	800	67	765	5	600	25	594
375	E I DU PONT DE NEMOURS & CO	$28,268	17%	158	89	790	64	734	4	748	34	358
384	ECOLAB INC	$1,829	16%	167	89	791	75	843	4	760	27	542
411	SINOPEC SHANGHAI PETRO- CHEMICAL CO	$1,695	15%	209	83	739	22	170	5	658	11	950
418	INTER- NATIONAL SPEC. PRODUCTS	$784	15%	197	87	767	48	495	3	830	28	504
432	ROHM & HAAS CO	$6,879	15%	204	86	763	80	877	5	668	46	171
433	DOW CHEMICAL CO	$23,008	12%	299	68	612	49	507	5	586	33	367
463	SPARTECH CORP	$961	9%	463	54	495	54	584	8	368	35	330
469	SINOPEC BEIJING YANHUA PETROCHEM	$780	12%	308	72	642	25	202	6	516	2	998
476	STEPAN CO	$699	8%	492	53	483	50	538	10	304	27	536
509	CYTEC INDUS. INC	$1,493	10%	363	72	648	63	721	7	443	27	534
516	ENGEL- HARD CORP	$5,543	5%	693	41	373	32	274	11	274	18	837
517	N L INDUS. INC	$922	11%	350	74	666	55	599	3	861	64	71
549	OLIN CORP	$1,549	9%	464	67	610	44	447	6	546	30	426
550	LUBRIZOL CORP	$1,776	13%	263	91	803	63	717	5	669	28	526
553	GENTEK INC	$1,414	8%	524	63	566	59	661	8	394	32	386
557	RHODIA	$5,540	8%	477	67	603	55	613	4	706	48	150
559	W R GRACE & CO NEW	$1,472	7%	594	58	515	55	601	7	459	29	465
613	FERRO CORP	$1,447	8%	531	71	637	62	700	6	515	34	342
615	ETHYL CORP	$844	14%	237	107	875	63	714	4	781	27	533
622	BASF AG	$33,748	10%	406	84	748	62	698	5	690	29	485
630	ARCH CHEM. INC	$941	8%	482	77	695	65	738	4	713	49	143
634	KOPPERS INDUS. INC	$664	7%	557	72	643	44	440	6	555	26	571
672	LYONDELL CHEMICAL CO	$4,036	9%	435	88	779	62	710	5	653	53	113
683	H B FULLER CO	$1,353	6%	645	70	633	64	723	6	521	35	331
699	MACDERMID INC	$756	11%	359	99	838	78	858	4	762	29	469
734	FOAMEX INTER- NATIONAL INC	$1,280	1%	895	51	460	57	627	10	316	40	247
769	CROMPTON CORP	$3,038	6%	611	87	773	49	506	3	845	37	288
789	PHARMACIA CORP DE	$18,144	10%	371	113	890	83	889	2	948	26	574
811	HERCULES INC	$3,248	9%	447	110	885	92	930	4	728	35	332
817	VALHI INC	$1,192	9%	439	111	886	58	649	3	827	24	655
824	ANDERSONS INC	$970	0%	929	62	555	19	153	5	666	26	561
844	AKZO NOBEL NV	$14,468	10%	384	123	920	71	817	4	750	1	999
845	MILLEN- NIUM CHEMICALS INC	$1,793	4%	752	88	784	52	555	5	644	27	541
853	B F GOODRICH CO	$4,364	7%	593	107	877	66	756	4	811	34	357
864	NCH CORP	$728	5%	712	97	829	70	802	4	776	23	687
870	A SCHULMAN INC	$1,033	5%	713	98	831	57	630	5	647	22	690
876	RPM INC	$1,954	6%	621	109	880	76	846	4	759	17	855
906	TERRA INDUS. INC	$766	2%	873	91	799	47	488	4	735	59	91
940	SIGMA ALDRICH CORP	$1,096	16%	170	196	991	67	761	1	990	18	840
551	Industry Average	$4,217	11%		79		58		6		33