2001 Working Capital Survey – Chart 32

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”

TRANSPORTATION EQUIPMENT
Overall Rank	Company Name	Prior Year Sales	Cash Conver. Effic.		Days Working Cap.		Days Sales Outst.		Inven. Turns		Days Payable Outst.
Overall Rank	Company Name	Prior Year Sales	CCE	Rk.	DWC	Rk.	DSO	Rk.	Turns	Rk.	DPO	Rk.
163	PACCAR INC	$7,919	8%	497	(11)	16	25	199	18	161	54	108
303	GREEN- BRIER COS	$619	5%	686	10	93	33	293	5	622	85	26
491	TRINITY IND. INC	$2,741	7%	584	49	442	50	523	6	512	50	131
563	STEWART & STEVENSON SRVS. INC	$912	15%	211	104	858	69	790	5	601	31	422
664	OSHKOSH TRUCK CORP	$1,324	5%	684	64	576	30	262	5	589	25	588
670	WESTING- HOUSE AIR BRAKE TECH- NOLOGIES CORP	$1,121	9%	466	84	749	55	594	5	573	26	565
715	WABASH NATIONAL CORP	$1,332	4%	735	65	591	23	179	5	667	31	408
717	CUMMINS ENGINE CO	$6,597	5%	697	70	628	48	500	7	464	21	732
775	FEDERAL SIGNAL CORP	$1,106	7%	604	89	794	58	650	5	660	23	662
562	Industry Average	$2,630	7%		58		43		7		39