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

To: Suresh who wrote (99365)	2/15/1999 2:00:00 AM
From: Chuzzlewit	Read Replies (1) \| Respond to of 176387

Suresha, the point that I made was that receivables have nothing to do with earnings. I stand by that comment. I never said receivables do not matter. They simply do not appear on income statements. As to an increase in receivables being a warning sign, that is possible if normal explanations do not hold. For example, a sudden increase in receivables may be a sign of channel stuffing -- but Dell has no channels. Or, it might indicate back-end loading of a quarter by reducing prices to get revenues up. But that would show up as a substantial decrease in gross margins. Traditionally, receivables in Europe are longer than they are in the US, and increasing European exposure could result in increased receivables. This could be a planned increase in the receivables period. The danger in increased receivables is that it could cut into ability to grow rapidly. But it has nothing to do with earnings. TTFN, CTC