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”
TEXTILES & APPAREL | ||||||||||||
Overall 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. | |||
393 | TIMBERLAND CO | $1,091 | 13% | 271 | 68 | 613 | 33 | 296 | 4 | 718 | 14 | 925 |
395 | UNIFI INC | $1,280 | 13% | 248 | 73 | 649 | 58 | 646 | 8 | 390 | 24 | 630 |
500 | TOMMY HILFIGER CORP | $1,977 | 13% | 243 | 88 | 781 | 43 | 421 | 4 | 764 | 6 | 988 |
542 | JONES APPAREL GROUP INC | $4,143 | 10% | 393 | 73 | 651 | 34 | 313 | 4 | 774 | 21 | 727 |
570 | WARNACO GROUP INC | $2,114 | 9% | 437 | 73 | 660 | 56 | 618 | 2 | 929 | 90 | 20 |
584 | LIZ CLAIBORNE INC | $3,104 | 8% | 496 | 69 | 616 | 36 | 323 | 4 | 790 | 27 | 554 |
595 | CYRK INC | $989 | 4% | 767 | 45 | 409 | 46 | 468 | 13 | 233 | 25 | 606 |
652 | NAUTICA ENTERPRISES INC | $621 | 11% | 349 | 94 | 814 | 64 | 728 | 4 | 745 | 17 | 870 |
709 | WESTPOINT STEVENS INC | $1,816 | 7% | 558 | 82 | 734 | 17 | 140 | 3 | 834 | 17 | 863 |
742 | V F CORP | $5,748 | 8% | 530 | 91 | 801 | 47 | 477 | 4 | 801 | 22 | 699 |
749 | POLO RALPH LAUREN CORP | $1,949 | 7% | 579 | 88 | 782 | 36 | 331 | 3 | 924 | 24 | 640 |
754 | REEBOK INTER- NATIONAL LTD | $2,865 | 7% | 586 | 88 | 780 | 55 | 608 | 4 | 731 | 21 | 723 |
756 | NIKE INC | $8,995 | 8% | 487 | 96 | 823 | 64 | 726 | 4 | 726 | 21 | 726 |
779 | CONE MILLS CORP | $616 | 2% | 852 | 63 | 572 | 17 | 143 | 5 | 571 | 15 | 889 |
786 | BROWN SHOE CO INC | $1,593 | 4% | 766 | 75 | 673 | 17 | 135 | 3 | 909 | 28 | 514 |
790 | GUILFORD MILLS INC | $814 | 9% | 469 | 103 | 850 | 68 | 781 | 5 | 604 | 24 | 633 |
827 | DONNA KARAN INTER- NATIONAL INC | $662 | 1% | 921 | 63 | 570 | 43 | 423 | 5 | 614 | 34 | 355 |
836 | PHILLIPS VAN HEUSEN CORP | $1,271 | 2% | 834 | 77 | 694 | 23 | 178 | 4 | 796 | 11 | 948 |
849 | OXFORD INDUSTRIES INC | $840 | 4% | 772 | 87 | 768 | 48 | 501 | 4 | 693 | 28 | 524 |
888 | SPRINGS INDUSTRIES INC | $2,275 | 5% | 698 | 105 | 863 | 47 | 479 | 4 | 757 | 17 | 858 |
931 | GALEY & LORD INC | $958 | 3% | 781 | 116 | 900 | 72 | 825 | 5 | 646 | 25 | 615 |
934 | KELLWOOD CO | $1,565 | 3% | 802 | 116 | 899 | 67 | 760 | 4 | 761 | 26 | 580 |
942 | RUSSELL CORP | $1,218 | 10% | 383 | 160 | 969 | 59 | 659 | 2 | 951 | 19 | 809 |
956 | HARTMARX CORP | $681 | 5% | 710 | 144 | 952 | 71 | 808 | 3 | 884 | 21 | 748 |
962 | DAN RIVER INC GA | $663 | 5% | 723 | 145 | 953 | 53 | 570 | 3 | 903 | 19 | 796 |
974 | WOLVERINE WORLD WIDE INC | $701 | 6% | 678 | 162 | 974 | 87 | 911 | 3 | 883 | 11 | 962 |
986 | FRUIT OF THE LOOM LTD | $1,835 | -5% | 992 | 145 | 954 | 28 | 235 | 2 | 960 | 24 | 638 |
755 | Industry Average | $1,940 | 6% | 96 | 48 | 4 | 23 |