Strategy

2001 Working Capital Survey – Chart 18

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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


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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.
218 HERMAN MILLER INC $1,938 13% 273 31 259 41 403 26 116 19 799
221 HON INDUSTRIES INC $2,046 9% 442 11 104 39 367 17 184 43 202
301 STEELCASE INC $3,316 12% 279 51 459 53 579 16 190 18 845
322 ETHAN ALLEN INTERIORS INC $856 12% 284 55 498 17 137 3 874 28 510
362 MAYTAG CORP $4,248 11% 337 54 487 43 430 8 421 24 628
546 KIMBALL INTER- NATIONAL INC $1,201 7% 607 55 496 47 478 8 413 26 564
577 WHIRLPOOL CORP $10,325 6% 630 56 505 58 642 7 444 40 246
688 LEGGETT & PLATT INC $4,276 10% 370 96 822 54 590 5 645 15 907
758 BLACK & DECKER CORP $4,561 8% 508 95 819 64 731 4 766 29 475
800 INTERFACE INC $1,284 6% 668 87 774 58 647 5 689 26 575
829 HARMAN INTER- NATIONAL INDUST. INC $1,678 8% 473 109 883 71 814 4 777 31 420
834 FURNITURE BRANDS INTNL. INC $2,116 7% 600 101 844 60 682 5 626 12 939
885 LA Z BOY INC $1,717 5% 699 104 857 79 868 7 432 15 905
981 SUNBEAM CORP NEW $2,398 -4% 987 128 934 68 786 3 833 32 383
987 PILLOWTEX CORP $1,552 2% 833 188 990 87 913 2 928 43 199
621 Industry Average $2,901 8%   81   56   8   27  

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