Strategy

2001 Working Capital Survey – Chart 3

CHEMICALS
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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CHEMICALS
Over- all Rank Company 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.
100 EASTMAN CHEMICAL CO $5,292 16% 174 11 103 51 543 7 428 79 30
142 AIR PRODUCTS & CHEM. INC $5,467 21% 83 58 518 65 743 9 360 37 281
183 PRAXAIR INC $5,043 19% 109 61 545 67 759 9 331 29 482
235 CABOT CORP $1,517 17% 161 60 533 76 848 4 755 80 29
250 GEORGIA GULF CORP $1,582 12% 286 38 328 44 432 9 336 40 242
261 GREAT LAKES CHEM. CORP $1,671 26% 39 122 915 79 863 3 831 35 339
291 GEON CO $1,261 8% 486 25 211 28 225 8 382 42 214
302 IMC GLOBAL INC $2,096 16% 171 74 661 37 342 4 737 35 318
305 SOLUTIA INC $3,185 13% 251 56 507 52 553 7 479 39 254
307 MINERALS TECH.INC $671 17% 147 80 719 64 729 7 461 21 729
312 AVERY DENNISON CORP $3,894 11% 320 47 429 52 556 9 324 30 440
351 ALBE- MARLE CORP $918 18% 136 91 800 67 765 5 600 25 594
375 E I DU PONT DE NEMOURS & CO $28,268 17% 158 89 790 64 734 4 748 34 358
384 ECOLAB INC $1,829 16% 167 89 791 75 843 4 760 27 542
411 SINOPEC SHANGHAI PETRO- CHEMICAL CO $1,695 15% 209 83 739 22 170 5 658 11 950
418 INTER- NATIONAL SPEC. PRODUCTS $784 15% 197 87 767 48 495 3 830 28 504
432 ROHM & HAAS CO $6,879 15% 204 86 763 80 877 5 668 46 171
433 DOW CHEMICAL CO $23,008 12% 299 68 612 49 507 5 586 33 367
463 SPARTECH CORP $961 9% 463 54 495 54 584 8 368 35 330
469 SINOPEC BEIJING YANHUA PETROCHEM $780 12% 308 72 642 25 202 6 516 2 998
476 STEPAN CO $699 8% 492 53 483 50 538 10 304 27 536
509 CYTEC INDUS. INC $1,493 10% 363 72 648 63 721 7 443 27 534
516 ENGEL- HARD CORP $5,543 5% 693 41 373 32 274 11 274 18 837
517 N L INDUS. INC $922 11% 350 74 666 55 599 3 861 64 71
549 OLIN CORP $1,549 9% 464 67 610 44 447 6 546 30 426
550 LUBRIZOL CORP $1,776 13% 263 91 803 63 717 5 669 28 526
553 GENTEK INC $1,414 8% 524 63 566 59 661 8 394 32 386
557 RHODIA $5,540 8% 477 67 603 55 613 4 706 48 150
559 W R GRACE & CO NEW $1,472 7% 594 58 515 55 601 7 459 29 465
613 FERRO CORP $1,447 8% 531 71 637 62 700 6 515 34 342
615 ETHYL CORP $844 14% 237 107 875 63 714 4 781 27 533
622 BASF AG $33,748 10% 406 84 748 62 698 5 690 29 485
630 ARCH CHEM. INC $941 8% 482 77 695 65 738 4 713 49 143
634 KOPPERS INDUS. INC $664 7% 557 72 643 44 440 6 555 26 571
672 LYONDELL CHEMICAL CO $4,036 9% 435 88 779 62 710 5 653 53 113
683 H B FULLER CO $1,353 6% 645 70 633 64 723 6 521 35 331
699 MACDERMID INC $756 11% 359 99 838 78 858 4 762 29 469
734 FOAMEX INTER- NATIONAL INC $1,280 1% 895 51 460 57 627 10 316 40 247
769 CROMPTON CORP $3,038 6% 611 87 773 49 506 3 845 37 288
789 PHARMACIA CORP DE $18,144 10% 371 113 890 83 889 2 948 26 574
811 HERCULES INC $3,248 9% 447 110 885 92 930 4 728 35 332
817 VALHI INC $1,192 9% 439 111 886 58 649 3 827 24 655
824 ANDERSONS INC $970 0% 929 62 555 19 153 5 666 26 561
844 AKZO NOBEL NV $14,468 10% 384 123 920 71 817 4 750 1 999
845 MILLEN- NIUM CHEMICALS INC $1,793 4% 752 88 784 52 555 5 644 27 541
853 B F GOODRICH CO $4,364 7% 593 107 877 66 756 4 811 34 357
864 NCH CORP $728 5% 712 97 829 70 802 4 776 23 687
870 A SCHULMAN INC $1,033 5% 713 98 831 57 630 5 647 22 690
876 RPM INC $1,954 6% 621 109 880 76 846 4 759 17 855
906 TERRA INDUS. INC $766 2% 873 91 799 47 488 4 735 59 91
940 SIGMA ALDRICH CORP $1,096 16% 170 196 991 67 761 1 990 18 840
551 Industry Average $4,217 11%   79   58   6   33  

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