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Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Tweaker who wrote (37609)	4/13/1998 9:59:00 AM
From: Mohan Marette	Read Replies (1) \| Respond to of 176387

DELL's Asset Management metrics/mantra-[DSO+DSI-DPO=CCC]-Works for me. Great job Phil,wonderful link indeed and I liked the following the best. ------------------------------------------------------------------- DSO + DSI - DPO = CCC To determine improvements in return on invested capital, Dell's asset management team developed a set of internal benchmarks. Metrics included days sales outstanding (DSO), days sales in inventory (DSI), and days payables outstanding (DPO). Add DSO and DSI, then subtract DPO, and you get the chief metric Dell uses to measure its liquidity: cash conversion cycle (CCC). "These were metrics we felt people at the line level could understand and act upon," explains Caswell. The metrics tell a compelling tale. Since booting up its liquidity management program in the fourth quarter of 1996, Dell's cash conversion cycle has gone from an acceptable 40 days to a phenomenal minus-5 days in the fourth quarter of 1997.