Strategy

2001 Working Capital Survey – Chart 24

MEDICAL PRODUCTS
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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MEDICAL PRODUCTS
Over- all Rank Company Name Prev. 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 Rank
134 ABBOTT LABORA- TORIES $13,746 23% 64 67 606 57 633 4 782 34 362
143 EDWARDS LIFE- SCIENCES CORP $804 19% 119 47 425 58 641 4 779 67 57
151 BAXTER INTER- NATIONAL INC $6,896 17% 154 38 321 84 894 3 858 113 7
306 BOSTON SCIENTIFIC CORP $2,664 22% 69 109 882 65 740 2 955 13 933
403 WATERS CORP NEW $704 20% 100 112 889 82 883 3 888 22 710
408 GUIDANT CORP $2,549 19% 122 106 867 81 878 2 931 11 960
439 ALLERGAN INC $1,452 13% 249 79 703 62 708 3 862 22 708
442 FISHER SCIENTIFIC INTER- NATIONAL INC $2,622 5% 708 29 250 39 361 8 373 42 211
479 SMITH & NEPHEW PLC $1,805 12% 289 77 692 95 941 2 968 98 10
520 HILLEN- BRAND INDUSTRIES INC $2,096 11% 313 79 704 72 821 11 275 13 934
536 DENTSPLY INTER- NATIONAL INC DE $890 14% 218 98 835 58 636 3 875 19 820
575 MEDTRONIC INC $5,015 17% 145 121 914 87 910 2 966 14 922
585 OWENS & MINOR INC NEW $3,504 2% 862 31 263 26 213 9 327 30 444
590 PATTERSON DENTAL CO $1,040 6% 658 56 502 48 491 6 497 28 505
649 C R BARD INC $1,099 15% 200 119 906 69 792 3 904 19 815
654 POLYMER GROUP INC $890 8% 488 79 709 58 653 5 584 31 411
682 APOGENT TECH- NOLOGIES INC $1,103 15% 192 125 926 77 854 3 913 20 782
704 BECTON DICKINSON & CO $3,618 15% 199 127 931 83 887 3 900 22 712
743 ST JUDE MEDICAL INC $1,179 17% 156 146 955 97 944 2 983 30 450
744 INVACARE CORP $1,013 7% 553 90 795 75 838 6 496 25 596
792 OMNICARE INC $1,971 6% 643 88 783 84 897 10 294 21 746
814 HENRY SCHEIN INC $2,382 3% 801 75 676 61 689 6 544 32 384
839 PSS WORLD MEDICAL INC $1,794 1% 924 68 611 59 666 8 416 27 550
857 BAUSCH & LOMB INC $1,772 14% 239 147 957 99 948 3 923 18 829
911 STRYKER CORP $2,289 14% 227 166 979 87 912 2 978 29 466
913 BIOMET INC $921 17% 157 184 986 98 947 1 993 11 955
919 STERIS CORP $761 6% 620 127 930 103 956 4 705 22 713
950 BECKMAN COULTER INC $1,887 8% 541 154 966 111 971 3 864 21 747
603 Industry Average $2,445 12%   98   74   4   30  

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