Michael Dell: We Maintained Six Days of Inventory for Seven Consecutive Years
Michael Dell · Michael Dell – Invest America Act Becomes Law, AI Talent Wars, Compute Demand, Market Update | BG2 · Bg2 Pod · Jul 10, 2025 · at 7:26
Michael Dell explains the structural working capital and inventory advantages behind Dell's business model.
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“You have six days of inventory, which we actually had for about seven years in a row, six days of inventory, think about that. The, it's a structural competitive advantage because you're, you have fresher inventory, you have fresher costs, and of course you don't have all that capital tied up, and so your return on capital is essentially infinite, especially when you're paying your suppliers on a period longer than your customers pay you, and so you have a negative cash conversion cycle, which we still have typically around -50 days cash conversion cycle.”
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