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”
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 |