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.
Sources: REL Consultancy Group, Piranha Web
Back to “Forget the Float? — The 2001 Working Capital Survey”
MINING & METALS | ||||||||||||
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. | |||
26 | ANGLO- GOLD LTD | $2,104 | 21% | 91 | (27) | 7 | 12 | 103 | 8 | 408 | 72 | 44 |
75 | NEWMONT MINING CORP | $1,820 | 28% | 31 | 66 | 599 | 9 | 89 | 3 | 857 | 12 | 938 |
165 | HOME- STAKE MINING CO | $666 | 17% | 153 | 42 | 379 | 22 | 177 | 6 | 509 | 20 | 788 |
213 | NUCOR CORP | $4,586 | 16% | 172 | 50 | 455 | 30 | 253 | 8 | 389 | 19 | 812 |
244 | TEXAS INDUS. INC | $1,306 | 17% | 149 | 66 | 596 | 27 | 221 | 5 | 664 | 26 | 572 |
262 | PHELPS DODGE CORP | $4,525 | 10% | 378 | 28 | 237 | 48 | 497 | 6 | 494 | 67 | 60 |
308 | USX U S STEEL GROUP | $29,534 | 7% | 595 | 19 | 162 | 26 | 212 | 9 | 329 | 36 | 311 |
346 | ALCOA INC | $22,936 | 13% | 242 | 66 | 595 | 52 | 562 | 7 | 462 | 27 | 532 |
386 | INTERMET CORP | $1,039 | 8% | 472 | 44 | 391 | 50 | 526 | 10 | 314 | 40 | 252 |
389 | QUANEX CORP | $934 | 9% | 467 | 45 | 404 | 39 | 366 | 8 | 407 | 32 | 390 |
420 | TREDEGAR CORP | $869 | 8% | 515 | 44 | 393 | 48 | 496 | 14 | 213 | 25 | 612 |
529 | MUELLER INDUS. INC | $1,206 | 12% | 301 | 82 | 727 | 53 | 576 | 6 | 492 | 16 | 885 |
533 | OREGON STEEL MILLS INC | $822 | 8% | 505 | 61 | 550 | 32 | 275 | 5 | 652 | 39 | 259 |
586 | BETHLEHEM STEEL CORP | $4,197 | 7% | 572 | 63 | 569 | 19 | 159 | 4 | 723 | 35 | 336 |
640 | AK STEEL HOLDING CORP | $4,612 | 6% | 629 | 66 | 597 | 41 | 401 | 5 | 687 | 40 | 241 |
685 | WORTHING- TON INDUS. INC | $1,963 | 8% | 475 | 85 | 753 | 61 | 692 | 5 | 585 | 34 | 350 |
712 | BIRMING- HAM STEEL CORP | $933 | 4% | 742 | 64 | 585 | 35 | 319 | 6 | 552 | 29 | 470 |
726 | COMMER- CIAL METALS CO | $2,661 | 3% | 800 | 61 | 541 | 49 | 510 | 8 | 386 | 28 | 519 |
738 | GIBRALTAR STEEL CORP | $678 | 6% | 662 | 78 | 700 | 45 | 449 | 5 | 617 | 25 | 598 |
785 | STEEL DYNAMICS INC | $693 | 8% | 520 | 98 | 834 | 42 | 410 | 4 | 717 | 13 | 932 |
795 | NATIONAL STEEL CORP | $2,979 | 2% | 867 | 64 | 578 | 31 | 271 | 5 | 590 | 30 | 453 |
796 | RELIANCE STEEL & ALUMINUM CO | $1,727 | 4% | 745 | 78 | 699 | 41 | 404 | 5 | 686 | 22 | 689 |
798 | WEIRTON STEEL CORP | $1,118 | 1% | 893 | 61 | 548 | 30 | 261 | 5 | 613 | 37 | 290 |
806 | ROUGE INDUSTRIES INC | $968 | 3% | 823 | 71 | 638 | 40 | 383 | 4 | 700 | 54 | 107 |
822 | WHX CORP | $1,717 | 7% | 577 | 100 | 842 | 26 | 205 | 3 | 880 | 45 | 180 |
833 | KAISER ALUMINUM CORP | $2,170 | 2% | 838 | 75 | 678 | 29 | 240 | 4 | 773 | 36 | 304 |
840 | A M CASTLE & CO | $707 | 3% | 822 | 80 | 713 | 42 | 413 | 3 | 866 | 49 | 141 |
862 | RYERSON TULL INC NEW | $2,862 | 3% | 819 | 85 | 752 | 38 | 353 | 4 | 742 | 23 | 659 |
878 | LTV CORP | $4,934 | 3% | 784 | 92 | 807 | 38 | 354 | 4 | 703 | 22 | 701 |
886 | MAXXAM INC | $2,311 | 2% | 855 | 86 | 762 | 29 | 245 | 4 | 820 | 30 | 445 |
897 | CARPENTER TECH- NOLOGY CORP | $1,096 | 7% | 606 | 118 | 902 | 57 | 625 | 3 | 856 | 26 | 567 |
898 | KAISER ALUMINUM & CHEMICAL CORP | $2,044 | 2% | 866 | 89 | 793 | 30 | 257 | 3 | 824 | 32 | 387 |
590 | Industry Average | $3,522 | 8% | 66 | 37 | 6 | 33 |