Strategy

2001 Working Capital Survey – Chart 6

CONSTRUCTION & MATERIALS
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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CONSTRUCTION & MATERIALS
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.
167 LAFARGE CORP $2,788 16% 183 36 301 52 564 7 472 57 97
184 VULCAN MATERIALS CO $2,492 18% 133 53 480 47 487 9 330 23 668
258 USG CORP $3,781 13% 267 43 386 35 316 10 297 18 838
311 OMNOVA SOLUTIONS INC $773 10% 422 36 307 46 465 8 384 41 229
360 NCI BUILDING SYSTEMS INC $1,018 11% 327 54 490 46 462 7 427 29 489
489 SHERWIN WILLIAMS CO $5,212 9% 430 62 560 44 431 4 753 32 396
526 OWENS CORNING $4,940 -1% 957 10 96 32 276 9 362 55 103
581 VALSPAR CORP $1,483 8% 484 69 623 68 782 6 517 41 236
605 BUTLER MANUFACT- URING CO $973 4% 744 49 447 46 474 9 349 31 404
620 DAL TILE INTER- NATIONAL INC $952 10% 360 88 785 42 416 3 850 14 917
621 MASCO CORP $6,307 9% 425 83 738 53 574 5 593 14 923
631 NORTEK INC $1,993 6% 634 65 586 49 505 6 491 27 530
647 APOGEE ENTERPRISES INC $840 5% 680 62 561 53 575 9 328 21 730
725 GENLYTE GROUP INC $1,008 8% 529 88 776 63 722 4 751 36 302
818 LENNOX INTER- NATIONAL INC $3,247 4% 771 79 707 59 664 5 609 30 441
902 HUGHES SUPPLY INC $2,995 1% 918 85 757 51 547 5 676 27 527
528 Industry Average $2,550 8%   60   49   7   31  

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