Jim, you are obviously lacking in Burke-speak, so for your edification here is how it works. If receivables go up in a greater percentage than the sales increase, then that's bad because it means that the company is obviously extending goodies to purchasers. Never mind the fact that margins didn't move materially. And ignore the fact that the Cash Conversion Cycle decreased.
Now if the receivables dropped in relationship to sales, well that's bad too because it means that growth slowed down towards the end of the quarter. So what if that interpretation is totally inconsistent with the prediction of decreasing sales at the beginning of the quarter due to the increase in receivables in the previous quarter. Remember, this is Burkian financial analysis!
Finally, if receivables increase in exact proportion to sales, well that's bad too, because that obviously means that Dell is unwilling to compete on price or terms in an imploding market.
So you see, if you are dealing with Dell, any number listed on the balance sheet as a receivable is bad.
TTFN,
CTC |
