Caspar Hunsche
Expert
Joined: 17 Oct 2005
Posts: 38
Location: Houston, TX
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 Posted: Sun Sep 30, 2007 11:38 pm Post subject: Asset Management: Working Capital |
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SCOR 8.0 defines Return on Working Capital as a level 1 metric.
We would like to know how many companies actually measure this. And for those that do not, whether it is considered of no value or unmeasurable.
For completeness the definition and calculation: | Quote: | Definition: Return on working capital is a measurement which assesses the magnitude of investment relative to a company’s working capital position verses the revenue generated from a supply chain. Components include accounts receivable, accounts payable, inventory, supply chain revenue, cost of goods sold and supply chain management costs.
Calculation: Return on Working Capital = (Supply Chain Revenue – COGS – Supply Chain Management Costs) / (Inventory + Accounts Receivable – Accounts Payable) |
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Caspar Hunsche
caspar.hunsche@pcor.com |
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