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

To: kemble s. matter who wrote (87188)	12/28/1998 5:33:00 PM
From: Chuzzlewit	Read Replies (1) \| Respond to of 176387

Happy new year Kemble, Actually, I think there was something on the Fool about this a year or two ago. They did an excellent job in explaining the dynamics of the cash flow generated by Dell, and how efficiency in operations results from making maximum use of assets, which of course means that asset levels are much lower than competitors. I'm talking here about not only inventory, and accounts receivable, but plant and equipment as well. The idea is that you can crank out a greater return from your assets if you operation is efficient. That in turn provides the cash (which doesn't need to be tied up in non-productive or marginally productive assets) that fuels rapid growth without the need to resort to borrowing money. TTFN, CTC