Strategy

2001 Working Capital Survey – Chart 17

HEALTHCARE PROVIDERS
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”

HEALTHCARE PROVIDERS
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.
185 APRIA HEALTH- CARE GROUP INC $1,014 16% 169 43 389 55 612 16 194 20 791
310 HEALTH- SOUTH CORP $4,195 17% 143 82 729 81 881 31 100 7 983
326 HCA HEALTH- CARE CO $16,670 9% 449 37 315 43 429 17 173 15 899
342 HEALTH NET INC $8,706 1% 910 (8) 23 16 127 13 244 47 164
392 VENCOR INC NEW $2,666 9% 431 49 446 60 677 60 50 15 900
496 HEALTH MANAGE- MENT ASSOC. $1,578 11% 319 75 669 83 892 28 108 17 859
513 QUORUM HEALTH GROUP INC $1,763 8% 510 58 522 70 801 21 140 19 802
531 EXPRESS SCRIPTS INC $6,787 4% 731 40 353 55 611 46 73 23 667
579 CARE- MARK RX INC $4,430 -2% 967 11 108 24 186 18 163 32 398
604 TENET HEALTH- CARE CORP $11,414 6% 666 58 523 74 837 27 113 23 671
637 PHYCOR INC $1,516 10% 419 85 758 92 929 55 56 11 958
651 BEVERLY ENTERPR. INC NEW $2,626 3% 799 49 441 56 621 51 65 12 941
671 PEERLESS TUBE CO $14,381 -3% 984 16 145 21 168 2,427 2 22 704
773 MARINER POST ACUTE NETWORK INC $2,118 1% 925 53 482 70 799 67 42 21 754
832 SUN HEALTH- CARE GROUP INC $2,529 0% 941 61 544 65 741 57 54 10 967
854 GENESIS HEALTH VENTURES INC $2,434 1% 888 75 668 79 867 24 129 17 856
867 DAVITA INC $1,445 6% 674 102 848 115 979 32 97 20 773
980 GENTIVA HEALTH SERVICES INC $1,507 -5% 993 118 904 122 983 14 226 24 646
586 Industry Average $4,877 5%   56   66   167   20  

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