Strategy

2001 Working Capital Survey – Chart 2

AUTOMOBILES
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”

AUTOMOBILES
Over- all Rank Co. Name Prior Year Sales Cash Conver. Effic. Days Working Cap. Days Sales Outst. Inven. Turns Days Payable Outst.
CCE Rk. DWC Rk. DSO Rk. Ts. Rk. DPO Rk.
55 FORD MOTOR CO $170,064 18% 129 (7) 26 11 98 20 146 33 372
116 HAYES LEMMERZ INTNL.INC $2,296 10% 388 (18) 8 44 437 9 340 96 15
120 BORG- WARNER INC $2,646 11% 344 (9) 19 28 226 12 256 60 85
147 GENERAL MOTORS CORP $184,632 11% 357 (1) 43 11 97 13 242 35 340
226 AMER. AXLE & MANUF. HLDGS $2,953 8% 514 6 77 25 195 18 171 38 270
242 TOWER AUTO. INC $2,532 10% 372 25 220 49 517 18 169 42 218
257 VISTEON CORP $19,467 6% 648 3 56 24 189 23 131 36 306
298 LEAR CORP $14,073 4% 734 4 60 51 546 22 136 62 78
333 JOHNSON CONTROLS INC $17,155 5% 694 15 138 50 539 26 117 47 162
335 AUTOLIV INC $3,812 11% 340 50 457 71 816 11 288 48 157
512 ARVIN- MERITOR INC $5,153 6% 654 46 415 76 845 9 357 67 59
532 LANCASTER COLONY CORP $1,104 12% 296 84 744 39 374 4 736 16 882
535 COLLINS & AIKMAN CORP NEW $1,902 3% 778 35 298 43 428 12 266 35 314
641 DANA CORP $12,460 6% 624 67 605 49 504 6 495 30 439
645 DURA AUTO. SYSTEMS INC $2,633 3% 796 48 439 70 795 14 225 44 193
653 MODINE MANUF. CO $1,139 9% 438 84 750 59 654 5 654 30 455
674 COOPER TIRE & RUBBER CO $3,472 9% 444 87 769 72 820 8 377 22 691
691 CARLISLE COS. INC $1,771 7% 560 79 706 51 552 6 556 24 653
706 A O SMITH CORP $1,248 6% 615 76 690 54 587 6 518 26 570
720 BANDAG INC $996 10% 399 98 837 71 810 6 540 11 961
772 FEDERAL MOGUL CORP $6,013 4% 727 76 684 48 493 5 656 34 353
783 APPLIED IND. TECH.INC $1,572 3% 779 72 646 49 512 6 498 20 786
838 GOODYEAR TIRE & RUBBER CO $14,417 4% 757 87 765 55 603 4 715 36 299
863 TBC CORP $743 3% 820 85 754 39 365 5 621 17 869
881 EXIDE CORP $2,194 5% 695 102 847 64 733 4 814 41 230
899 GENUINE PARTS CO $8,370 4% 737 104 860 47 480 3 865 27 528
930 STANDARD MOTOR PRODUCTS INC $658 11% 316 162 970 78 859 2 940 25 608
961 SNAP ON INC $2,176 8% 480 166 978 113 974 3 908 24 629
549 Industry Average $17,416 7%   58   51   10   37  

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