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To: Lee who wrote (46310)6/4/1998 3:35:00 PM
From: Chuzzlewit  Respond to of 176387
 
Lee, you asked:

But does it show the incredible cash conversion cycle of 40 days to - 5days in '97? Itshows up in ROIC but is not specifically shown and that's a feat in itself.

Actually, the high ROIC is due to the rapid cash conversion cycle. Were cash not converted that quickly then additional outside cash would be required to fuel expansion. In other words, the high ROIC is a direct function of a small CC number. That's why I am convinced that Tom Meredith is a genius. I have never seen numbers like that in any other business.

TTFN,
CTC