Strategy

2001 Working Capital Survey – Chart 32

TRANSPORTATION EQUIPMENT
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


Back to “Forget the Float? — The 2001 Working Capital Survey”

TRANSPORTATION EQUIPMENT
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. Turns Rk. DPO Rk.
163 PACCAR INC $7,919 8% 497 (11) 16 25 199 18 161 54 108
303 GREEN- BRIER COS $619 5% 686 10 93 33 293 5 622 85 26
491 TRINITY IND. INC $2,741 7% 584 49 442 50 523 6 512 50 131
563 STEWART & STEVENSON SRVS. INC $912 15% 211 104 858 69 790 5 601 31 422
664 OSHKOSH TRUCK CORP $1,324 5% 684 64 576 30 262 5 589 25 588
670 WESTING- HOUSE AIR BRAKE TECH- NOLOGIES CORP $1,121 9% 466 84 749 55 594 5 573 26 565
715 WABASH NATIONAL CORP $1,332 4% 735 65 591 23 179 5 667 31 408
717 CUMMINS ENGINE CO $6,597 5% 697 70 628 48 500 7 464 21 732
775 FEDERAL SIGNAL CORP $1,106 7% 604 89 794 58 650 5 660 23 662
562 Industry Average $2,630 7%   58   43   7   39  

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