Strategy

2001 Working Capital Survey – Chart 23

MEDIA
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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MEDIA
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.
111 NEW YORK TIMES CO $3,489 18% 138 23 197 40 379 44 75 20 768
128 WASHING- TON POST CO $2,412 13% 257 5 68 44 436 76 38 42 217
133 TRIBUNE CO $4,910 21% 86 53 485 68 778 37 85 21 738
150 DOW JONES & CO INC $2,203 16% 166 34 289 44 434 86 32 12 944
152 GANNETT CO INC $6,222 17% 152 38 331 55 597 26 118 24 652
155 VALASSIS COMMUNI- CATIONS INC $835 15% 212 25 215 47 476 17 181 36 308
175 MCCLATCHY CO $1,142 15% 202 34 288 57 634 35 88 29 479
207 E W SCRIPPS CO OH $1,719 15% 216 39 347 61 690 39 82 26 587
229 KNIGHT RIDDER INC $3,212 13% 247 38 326 49 514 33 94 17 861
241 MEREDITH CORP $1,097 13% 258 41 367 49 516 12 249 20 780
354 MCGRAW HILL COS INC $4,281 18% 130 94 815 94 939 5 574 30 442
383 SCHOLAS- TIC CORP $1,403 15% 196 82 733 41 397 3 916 30 437
447 PRIMEDIA INC $1,691 6% 636 37 319 55 604 12 261 25 592
475 READER S DIGEST ASSOC- IATION INC $2,554 6% 618 43 380 46 466 9 354 21 743
545 HOLLINGER INTER- NATIONAL INC $2,096 3% 780 36 303 53 581 37 84 22 697
576 HOUGHTON MIFFLIN CO $1,028 15% 215 105 865 58 640 2 936 19 804
629 AMERICAN GREETINGS CORP $2,175 9% 461 79 711 66 757 3 859 30 452
697 HARTE HANKS INC $961 1% 911 43 382 66 755 93 27 26 558
820 MEDIA GENERAL INC $831 -2% 978 45 407 55 595 28 111 17 871
348 Industry Average $2,330 12%   47   55   31   25  

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