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

To: DaveF who wrote (38992)	4/26/1998 12:21:00 PM
From: Chuzzlewit	Read Replies (1) \| Respond to of 176387

Dave, while you are correct, if you look back a few thousand posts you will find a link to a CFO site that talks about what Meredith call the cash conversion cycle. Basically, this is a metric designed to monitor cash flow, and is calculated as: CCC = DSO + DI - DP where: DSO = days sales outstanding DI = days in inventory DP = day payables outstanding The idea is to minimize the number. As I recall, prior to Meredith coming on board with Dell CCC was around 40 days. It is current around -4 days. Much of the credit for Dell's success belongs to Meredith for focusing in this key element is running a business. A negative CCC means that you are operating on other people's money, and this clearly liberates lots of cash from operations so expansion and share buy-backs are much cheaper. TTFN, CTC