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Technology Stocks : Dell Technologies Inc.
DELL 122.55+4.4%Nov 21 9:30 AM EST

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To: Lockeon who wrote (102806)2/18/1999 6:43:00 PM
From: Chuzzlewit  Read Replies (2) of 176387
 
Lockeon, you may not believe this, but that has been one of the themes that I have been banging away at for some time. Invested capital is the sum of equity plus long term debt. ROIC is the earnings divided by invested capital. No company that I know of has returns on invested capital that comes close to Dell's.

But that is only part of the story. Earnings are fictions created by accountants. Cash flow is reality, and the cash flow generated by Dell is truly spectacular. The success in generating cash flow through a combination of production efficiency and superb financial management has allowed Dell to grow at stupendous rates without the need for external financing. That is the genius of this company.

As you may guess, I like Dell.

TTFN,
CTC
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