Cash Flow by popoe Blog entry

Blog: Body in Ecstasy
by popoe

Cash Flow

Companies that got it and those that doen't

Date: 12/27/2007 5:33:47 AM ( 17 y ) ... viewed 1234 times

5 6 C F O D E C E M B E R 2 0 0 7
The 2007 REL/CFO Cash Masters Scorecard ranks the 1,000
largest public companies headquartered in the United States by
cash conversion efficiency—cash flow from operations divided by
sales—based on publicly available year-end results for fiscal 2006.
The top three and bottom three performers in 25 industries are
shown here. The industries are defined by the Global Industry
Classification Standard, a Standard & Poor’s classification that
enables global comparisons by industry.
The data source for public information is Capital IQ. The
metrics analyzed for the scorecard are calculated from year-end
results for fiscal 2006. They include sales, cost of goods sold,
SG&A expense, cash flow from operations, cash balance on the
balance sheet, trade receivables, payables (excluding accruals,
deferred income, and other cash and cash equivalents), inventory,
total debt, and total equity. The data has been adjusted to
reflect the impact of off-balance-sheet arrangements in order to
provide true, consistent, and comparable figures.
The complete Cash Masters Scorecard, featuring threeyear
performance data for all 1,000 companies, in 57 industries,
can be found at www. cfo. com/cashmasters.
Aerospace & Defense
Rockwell Collins 15% 17% 4% 46% 29% 11% 32%
Raytheon** 14% 13% 12% 13% 18% 7% 17%
Boeing 12% 13% 10% 26% 19% 7% 11%
Teledyne Technologies 5% 8% 1% 20% 29% 20% 20%
Goodrich** 5% 6% 3% 18% 27% 16% 32%
AAR -5% 7% 14% 9% 18% 11% 32%
Industry Average† 8% 10% 5% 19% 21% 9% 23%
Airlines
SkyWest 16% 11% 13% 11% 22% 5% -1%
Southwest Airlines 15% 28% 15% 11% 31% 0% -3%
Alaska Air Group 13% 9% 7% 7% 20% 5% 1%
US Airways Group 5% 1% 10% 15% 40% 22% 1%
AirTran Holdings 4% 4% 8% 3% 18% 7% 1%
Mesa Air Group -1% 0% 3% 9% 14% 5% 2%
Industry Average† 9% 8% 10% 11% 23% 6% 0%
Beverages
Coca-Cola 25% 28% 10% 30% 66% 39% 14%
Brown-Forman 18% 22% 24% 24% 67% 41% 38%
PepsiCo 17% 18% 5% 35% 55% 36% 8%
Coca-Cola Enterprises 8% 9% 1% 11% 39% 32% 10%
Coca-Cola Bottling 7% 7% 4% 10% 44% 38% 7%
Constellation Brands 6% 9% 1% 11% 30% 14% 47%
Industry Average† 13% 15% 6% 19% 47% 32% 17%
Biotechnology
Biogen Idec 45% 52% 35% 12% 86% 39% 30%
Gilead Sciences 40% 35% 27% 56% 87% 21% 27%
Amgen 38% 40% 9% 18% 85% 24% 24%
Cephalon 18% 15% 28% 13% 85% 39% 19%
Brown Shoe 6% 6% 2% 16% 39% 35% 15%
MedImmune -10% 9% 28% -1% 76% 42% 21%
Industry Average† 23% 27% 20% 20% 78% 32% 24%
Chemicals
OM Group 31% 19% 43% 7% 28% 16% 32%
Monsanto 23% 28% 20% 15% 49% 22% 36%
Praxair 21% 19% 0% 20% 40% 13% 13%
Olin 2% 12% 6% 26% 10% 5% 12%
A. Schulman 1% 4% 3% 14% 14% 9% 26%
Wellman -3% 2% 0% -2% 3% 4% 18%
Industry Average† 9% 8% 7% 17% 25% 13% 20%
BEST
WORST
Company 2006 2005
Cash Conversion Efficiency
Cash
as a % of Sales
2006
ROCE*
2006
Gross Margin
2006
SG&A
as a % of Sales
2006
Net Working
Capital
as a % of Sales
2006
2007 CASH MASTERS SCORECARD
MASTERING THE F L O W
C F O D E C E M B E R 2 0 0 7 5 7
BEST
WORST
Communications Equipment
QualComm 43% 47% 21% 20% 71% 15% 7%
Corning 35% 42% 22% 22% 44% 17% 15%
Juniper Networks 33% 31% 69% 6% 68% 30% 3%
Motorola 8% 13% 7% 19% 30% 11% 17%
CommScope 7% 6% 17% 17% 28% 15% 16%
Andrew 4% 5% 8% 5% 22% 12% 29%
Industry Average† 19% 20% 17% 16% 43% 18% 16%
Computers & Peripherals
Network Appliance 27% 29% 22% 14% 61% 33% 18%
EMC 19% 23% 16% 10% 53% 29% 17%
SanDisk 18% 21% 49% 11% 39% 13% 24%
Sun Microsystems 4% 3% 27% -6% 43% 31% 14%
Logitech Int’l 8% 14% 14% 28% 32% 16% 17%
Gateway -2% -1% 9% 0% 7% 8% 0%
Industry Average† 11% 13% 17% 23% 31% 16% 11%
Diversified Telecommunication Services
Citizens Communications 42% 42% 51% 12% 92% 1% 1%
Centurytel 34% 39% 1% 12% 64% 15% 4%
Verizon Communications 27% 32% 4% 17% 60% 28% 9%
Qwest Communications Int’l 20% 17% 9% 12% 60% 28% 4%
Level 3 Communications 6% -7% 50% -2% 55% 37% -2%
IDT -11% 0% 5% -17% 20% 25% 5%
Industry Average † 21% 22% 16% 8% 58% 22% 5%
Electric Utilities
Entergy 31% 15% 9% 11% 29% 0% 3%
Exelon 31% 14% 1% 19% 43% 1% 7%
Edison Int’l 28% 19% 14% 15% 30% 0% 6%
Northeast Utilities 6% 6% 7% 6% 30% 0% 6%
Pepco Holdings 2% 12% 1% 8% 18% 0% 10%
Duquesne Light Holdings 1% 14% 7% 5% 28% 0% 4%
Industry Average† 17% 16% 5% 10% 34% 1% 7%
Electronic Equipment & Instruments
Molex 16% 17% 12% 16% 33% 21% 25%
Vishay Intertechnology 14% 9% 26% 8% 27% 16% 29%
Agilent Technologies 13% 19% 45% 11% 55% 31% 19%
Brightpoint** -2% 3% 2% 22% 6% 4% 8%
Benchmark Electronics -3% 0% 4% 14% 7% 2% 19%
Sanmina-SCI -3% 4% 4% 6% 6% 3% 12%
Industry Average† 4% 5% 10% 13% 17% 11% 16%
Energy Equipment & Services Industry
Noble 47% 38% 3% 24% 58% 2% 10%
Patterson-UTI Energy 33% 26% 1% 63% 51% 2% 15%
Transocean 32% 30% 12% 12% 44% 2% 16%
Baker Hughes 7% 13% 8% 33% 40% 14% 33%
FMC Technologies 4% -1% 2% 28% 20% 11% 28%
Smith Int’l 4% 4% 1% 35% 32% 17% 33%
Industry Average† 18% 15% 7% 27% 34% 8% 26%
Company 2006 2005
Cash Conversion Efficiency
Cash
as a % of Sales
2006
ROCE*
2006
Gross Margin
2006
SG&A
as a % of Sales
2006
Net Working
Capital
as a % of Sales
2006
Based on financial statements of the 1,000 largest U.S. public companies, as reported by Capital IQ. *ROCE = return on capital employed ** Off-balance-sheet receivables added back †Average is for entire category, not just
for those companies listed. For complete results of the study, see www. cfo. com/cashmasters. Source: REL
FOR THE LARGEST 1,000 U.S. COMPANIES, AVERAGE CASH
CONVERSION EFFICIENCY—A MEASURE OF A
COMPANY’S ABILITY TO TURN SALES DOLLARS INTO CASH—
DECLINED BETWEEN 2005 AND 2006.
Food & Staples Retailing
Whole Foods Market 8% 9% 0% 23% 35% 29% 3%
Wal-Mart 6% 6% 2% 20% 24% 18% 2%
Safeway 5% 5% 1% 14% 29% 25% 2%
SuperValu 2% 3% 1% 9% 22% 18% 3%
Great Atlantic & Pacific Tea 1% -1% 1% 0% 30% 30% 5%
Andersons -4% 3% 2% 11% 14% 11% 15%
Industry Average† 3% 3% 1% 8% 22% 19% 5%
Food Products
Campbell Soup 17% 14% 9% 23% 42% 25% 7%
General Mills 16% 16% 6% 17% 36% 19% 11%
William Wrigley Jr. 15% 18% 5% 25% 53% 34% 16%
Chiquita Brands Int’l 0% 6% 1% 2% 12% 9% 6%
Sanderson Farms -1% 9% 1% -6% 2% 5% 10%
Bunge -1% 2% 1% 7% 6% 4% 12%
Industry Average† 8% 9% 4% 15% 25% 16% 14%
Gas Utilities
Equitable Resources 49% -25% 0% 21% 52% 10% 23%
Energen 35% 30% 1% 25% 52% 0% 16%
Questar 34% 26% 1% 23% 47% 6% 4%
Star Gas Partners 1% -6% 7% -8% 22% 18% 11%
Laclede Group 0% 6% 3% 10% 17% 0% 7%
New Jersey Resources -1% 7% 0% 12% 8% 1% 10%
Industry Average† 13% 8% 2% 13% 25% 6% 10%
Household Durables
American Greetings 15% 14% 8% 4% 53% 50% 10%
Ethan Allen Interiors 12% 11% 16% 24% 51% 37% 17%
Harman Int’l Industries 12% 14% 9% 29% 35% 23% 15%
DR Horton -8% -4% 3% 18% 26% 10% 69%
Hovnanian Enterprises -11% 0% 1% 13% 23% 11% 64%
WCI Communities -24% 0% 2% 4% 17% 9% 152%
Industry Average† 3% 4% 4% 18% 29% 18% 44%
Household Products
Procter & Gamble 17% 15% 10% 14% 51% 31% 10%
Kimberly-Clark 15% 15% 2% 27% 32% 15% 17%
Colgate-Palmolive 15% 16% 4% 49% 56% 35% 12%
Church & Dwight 10% 11% 6% 15% 39% 25% 14%
Central Garden & Pet 6% 4% 2% 10% 33% 25% 28%
Spectrum Brands 2% 9% 1% 8% 38% 29% 19%
Industry Average† 11% 12% 4% 23% 43% 27% 18%
Independent Power Producers & Energy Traders
TXU** 46% 24% 0% 32% 62% 7% 8%
AES 20% 22% 12% 16% 29% 3% 13%
Mirant 18% 1% 37% 16% 43% 0% 8%
NRG Energy 7% 4% 14% 10% 42% 5% 8%
Constellation Energy Group 3% 4% 12% 13% 11% 0% 10%
Dynegy -10% -1% 18% 5% 31% 7% 14%
Industry Average† 14% 9% 16% 15% 36% 4% 10%
Industrial Conglomerates
General Electric 19% 26% 9% 4% 54% 23% 2%
Walter Industries 19% 30% 10% 19% 45% 13% 7%
3M 17% 20% 6% 38% 49% 21% 19%
McDermott Int’l 6% 14% 15% 55% 18% 9% 15%
Sequa 3% 3% 8% 9% 17% 11% 32%
Carlisle 1% 10% 6% 19% 20% 9% 24%
Industry Average† 11% 15% 8% 21% 30% 14% 17%
5 8 C F O D E C E M B E R 2 0 0 7
Company 2006 2005
Cash Conversion Efficiency
Cash
as a % of Sales
2006
ROCE*
2006
Gross Margin
2006
SG&A
as a % of Sales
2006
Net Working
Capital
as a % of Sales
2006
BEST
WORST
MASTERING THE F L O W
Machinery
Danaher 16% 15% 3% 17% 44% 29% 18%
Illinois Tool Works 15% 14% 4% 23% 38% 17% 23%
Caterpillar 14% 9% 1% 15% 29% 9% 25%
SPX 1% -3% 11% 11% 28% 20% 26%
Kennametal 1% 9% 10% 17% 36% 25% 26%
Tecumseh Products -5% 1% 5% -7% 5% 10% 20%
Industry Average† 8% 8% 5% 18% 27% 16% 21%
Metals & Mining
Southern Copper 38% 41% 19% 59% 63% 2% 13%
Freeport-McMoRan Copper & Gold 32% 37% 16% 92% 56% 3% 7%
Newmont Mining 25% 29% 23% 13% 50% 6% 16%
Gibraltar Industries -1% 13% 1% 13% 20% 11% 27%
Ryerson -4% 6% 1% 9% 15% 12% 26%
Olympic Steel -5% 9% 1% 18% 20% 13% 23%
Industry Average† 10% 12% 6% 28% 23% 6% 17%
Multi-Utilities
Black Hills 40% 28% 6% 9% 56% 14% 20%
Duke Energy 25% 17% 6% 7% 37% 0% 13%
Dominion Resources 24% 15% 1% 10% 34% 0% 8%
Puget Energy 6% 10% 1% 8% 32% 0% 13%
Aquila 4% 4% 17% 1% 12% 0% 12%
Integrys Energy Group 2% 1% 0% 7% 6% 0% 10%
Industry Average† 15% 11% 3% 9% 30% 2% 11%
Paper & Forest Products
MeadWestvaco 9% 4% 2% 6% 18% 13% 17%
Louisiana-Pacific 8% 20% 12% 4% 18% 7% 7%
Weyerhaeuser 7% 8% 1% 11% 22% 8% 25%
International Paper 6% 7% 7% 10% 26% 13% 12%
Bowater 5% 5% 3% 4% 24% 14% 16%
Wausau Paper 3% 2% 2% 10% 10% 7% 12%
Industry Average† 6% 7% 5% 7% 20% 11% 15%
Pharmaceuticals
Pfizer 36% 31% 4% 19% 85% 32% 28%
Mylan Laboratories 33% 16% 12% 22% 50% 16% 35%
Merck 30% 35% 26% 24% 77% 33% 20%
Wyeth 16% 13% 33% 22% 73% 32% 23%
Bristol-Myers Squibb 12% 10% 11% 15% 67% 35% 17%
Perrigo 9% 8% 1% 10% 30% 16% 27%
Industry Average† 23% 21% 15% 18% 67% 30% 25%
Road & Rail
Dollar Thrifty Automotive Group 28% 29% 12% 6% 50% 15% 4%
Norfolk Southern 23% 25% 6% 16% 39% 1% 0%
CSX 22% 13% 5% 13% 30% 0% 4%
Saia 9% 11% 1% 17% 13% 0% 7%
US Xpress Enterprises 8% 6% 0% 10% 16% 7% 9%
YRC Worldwide 5% 6% 1% 16% 13% 0% 8%
Industry Average † 14% 15% 4% 18% 29% 8% 5%
Semiconductors & Semiconductor Equipment
Micron Technology 38% 25% 27% 4% 23% 9% 14%
National Semiconductor 37% 28% 43% 36% 59% 13% 13%
MEMC Electronic Materials 34% 29% 34% 48% 45% 7% 10%
Cypress Semiconductor 12% 9% 38% 4% 43% 20% 17%
Fairchild Semiconductor Int’l 11% 11% 32% 9% 30% 15% 19%
Agere Systems 0% 8% 26% 20% 49% 16% 13%
Industry Average† 22% 21% 30% 16% 45% 15% 21%
C F O D E C E M B E R 2 0 0 7 5 9
Company 2006 2005
Cash Conversion Efficiency
Cash
as a % of Sales
2006
ROCE*
2006
Gross Margin
2006
SG&A
as a % of Sales
2006
Net Working
Capital
as a % of Sales
2006
BEST
WORST
Based on financial statements of the 1,000 largest U.S. public companies, as reported by Capital IQ. *ROCE = return on capital employed ** Off-balance-sheet receivables added back †Average is for entire category, not just
for those companies listed. For complete results of the study, see www. cfo. com/cashmasters. Source: REL