Strategy

2001 Working Capital Survey – Chart 22

INDUSTRIAL TRANSPORTATION
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”

INDUSTRIAL TRANSPORTATION
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.
13 BURLING- TON NORTHERN SANTA FE $9,205 25% 44 (51) 5 16 133 16 192 77 36
19 SEA CONTAIN. LTD $1,339 11% 324 (109) 3 61 693 18 168 184 5
144 UNION PACIFIC CORP $11,878 13% 262 11 106 20 160 17 179 20 783
172 WERNER ENTERPR. INC $1,215 14% 219 28 243 40 393 106 22 14 919
243 AIRBORNE INC $3,140 10% 362 27 230 39 373 58 52 18 852
253 J B HUNT TRANSPORT SERVICES INC $2,160 7% 552 11 102 39 371 142 17 29 460
265 ALEXANDER & BALDWIN INC $1,050 10% 374 29 247 41 396 52 64 18 850
267 SWIFT TRANSPOR. CO INC $1,259 12% 300 38 334 51 548 117 21 15 895
268 ST JOE CO $881 6% 610 8 83 25 193 636 5 21 749
277 FEDEX CORP $18,257 10% 389 30 254 47 489 35 89 24 621
328 YELLOW CORP $3,588 6% 612 23 194 29 244 205 11 8 975
377 US FREIGHT- WAYS $2,539 8% 532 36 308 46 467 73 39 14 912
457 CNF INC $5,593 7% 599 42 374 60 675 97 25 21 728
458 ALLIED HOLDINGS INC $1,081 4% 739 27 233 42 411 89 30 17 857
617 CONSOLI- DATED FREIGHT- WAYS CORP $2,352 2% 865 37 314 50 537 186 13 15 906
277 Industry Average $4,369 10%   12   40   123   33  

Back to the 2001 Working Capital Survey