Dell Case

Mariah Acap

Current Financial Health

Three Goals for 1997

1. Fund 52% sales growth internally

2. Buyback 500 million shares

3. Retire Current Debt

Can Goals be Met?

How to Meet All Goals

1. Shrink Cash Conversion Cycle Expand Days Payable (Non-Interest bearing liability) Shrink days receivable (Current Asset) Shrink days in inventory (Current Asset) 2. Improve Cost Structure (Increase Retained Earnings)

Decrease Cost of Sales Decrease Operating Expense

Working Capital Management

Currently at 10.20%

Cost Structure Analysis

Currently at 81.18%

Currently at 14.51%

Our Recommendations
1. Decrease AFN by: Improving Cost Structure Lower operating costs Improve cost of production Decreasing Cash Conversion Cycle Extending supplier trade credit to increase days payable Collect debts faster than debts are owed