Strategy

2001 Working Capital Survey – Chart 14

FOREST PRODUCTS & PAPER
CFO StaffJuly 1, 2001

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.

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Sources: REL Consultancy Group, Piranha Web


Back to “Forget the Float? — The 2001 Working Capital Survey”

FOREST PRODUCTS & PAPER
Over- all Rank Company Name Prior Year Sales Cash Conver. Effic. Days Working Capital Days Sales Outst. Inven. Turns Days Payable Outst.
CCE Rk. DWC Rk. DSO Rk. Ts. Rk. DPO Rk.
138 RAYONIER INC $1,227 19% 120 45 400 36 335 9 322 24 631
153 WESTVACO CORP $3,663 15% 203 26 228 40 382 8 422 48 154
174 BOWATER INC $2,500 12% 282 18 156 58 638 10 302 67 61
283 WILLAMETTE INDUSTRIES INC $4,652 13% 244 52 466 33 289 8 396 19 818
284 POTLATCH CORP $1,809 10% 394 31 258 37 339 7 466 49 142
290 LOUISIANA PACIFIC CORP $2,933 8% 528 21 178 20 161 8 371 34 345
345 WEYER- HAEUSER CO $14,603 10% 369 47 426 35 315 7 429 26 559
373 CARAUSTAR INDUSTRIES INC $963 11% 354 52 473 39 372 7 426 24 626
401 BUCKEYE TECH- NOLOGIES INC $713 17% 159 93 813 51 542 5 673 16 886
410 ROCK TENN CO $1,463 8% 476 45 411 37 344 11 273 17 867
419 P H GLATFELTER CO $681 14% 234 78 696 36 329 5 651 21 739
424 BOISE CASCADE CORP $7,807 7% 588 39 341 32 279 8 387 29 481
437 MEAD CORP $4,368 11% 325 66 600 45 451 7 477 24 637
456 WAUSAU MOSINEE PAPER CORP $952 10% 376 62 552 27 218 5 592 24 623
474 MAIL WELL INC $2,425 6% 655 39 348 35 322 11 290 23 682
497 GEORGIA PACIFIC CORP $22,218 9% 448 62 553 40 387 7 452 19 805
537 UNIVERSAL FOREST PRODUCTS INC $1,389 4% 743 39 349 18 147 10 312 11 954
552 INTER- NATIONAL PAPER CO $28,180 8% 499 64 584 46 470 6 542 28 523
610 SMURFIT STONE CONTAINER CORP $8,796 5% 692 55 499 45 454 7 433 38 264
658 CROWN VANTAGE INC $739 1% 903 38 325 17 145 8 369 21 758
823 PENTAIR INC $2,748 7% 566 101 843 78 860 5 663 35 325
416 Industry Average $5,468 10%   51   38   8   28  

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