Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Mohan Marette who wrote (72808)	10/17/1998 11:57:00 PM
From: Chuzzlewit	Read Replies (1) \| Respond to of 176387

Mohan, that's why Tom Meredith won the title CFO of the year. Remember the implications of the negative cash conversion cycle are that cash is received from the customer prior to Dell having to use it to pay its suppliers. Thus, all of its capital needs to fuel growth can be supplied by customers regardless of the growth rate. I know of no other company like that. The three key elements in the strategy are: 1. Receive payments from customers as rapidly as possible; 2. Keep inventories as low as possible; 3. Keep payables as high as possible. So, you have CCC = Days in Inventory + Days Sales Outstanding - Days in Payables TTFN, CTC

To: Mohan Marette who wrote (72808)	10/18/1998 3:00:00 AM
From: freeus	Respond to of 176387

re time between manufacture and delivery is so tight... Exactly! I know of several companies that have great products and lots of sales locally that are in trouble because they have too much inventory and have trouble collecting what's owed them. Sometimes. after they have bought the material and put out the money they have to go to court to collect. Expensive, time consuming, energy consuming, etc etc and so forth. Non DELLheads do not realize how powerful DELL's model is. Freeus