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

To: Chuzzlewit who wrote (39001)	4/26/1998 1:40:00 PM
From: Mohan Marette	Read Replies (1) \| Respond to of 176388

Ref: CCC {Cash Conversion Cycle} Paul: According to the following excerpt the Dell's CCC is an impressive negative days,even better! "To really understand Dell's eye-popping numbers, you have to consider how fully it exploits the model of selling custom-made machines directly to buyers. First, Dell has no finished-goods inventory. Second, it ships machines with the latest high-margin components. Almost every computer Dell makes now is a Pentium II machine. Third, unlike manufacturers that use resellers, Dell has nothing but direct contact with its customers. If customers start requesting an 8.4-gigabyte drive, Dell knows immediately. Fourth, selling directly means that Dell isn't getting paid by resellers; it's getting paid by the likes of Boeing, Ford, and Shell Oil. Not surprisingly, Dell receivables have a great credit rating--higher, in fact, than Dell itself! Consumers and small businesses pay for their orders by credit card, which means Dell has its money in the bank before the motherboard meets the chassis. No wonder Dell has a cash-conversion cycle--the difference between the time it pays its creditors and the time it takes to get paid--of negative eight days."