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Strategies & Market Trends : Zeev's Turnips - No Politics -- Ignore unavailable to you. Want to Upgrade?

To: Pink Minion who wrote (79440)	6/15/2002 2:52:52 PM
From: Zeev Hed	Read Replies (2) \| Respond to of 99280

You take from the balance sheet their account receivable, divide that by the last quarterly sales (from the P&L statement) and multiply by 90 (the number of days a quarter typically represent). A well run company keeps that number under 50 (my target was 49 and when it run to 55 I had my Accts receivable person on the carpet <g>). When you see DOS going from let say 45 dys to 50 days QOQ, that usually indicates to me "stuffing the channel", or a potential bad next quarter (look at INTC Dec Q DOS at $45.9, Mar. Q DOS at 50.6, conclusion, they stuffed....particularly in view of the fact that typically the Dec. Q should have a higher DSO then usual, ut analysts kept crowing how great it was...) Zeev