Dell Computer reported the following information in its 1999 annual report (all amounts are expressed in millions):

The cost of revenue corresponds to what we call cost of goods sold. One might think that U.S. companies, at least, would use a common accounting terminology, but this is not true. The inventory tumover calculation is

This is amazing performance for a high-tech company, but it explains much of why the company is such a financial success. The corresponding weeks of supply calculation is

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Net revenue (fiscal year 1999) Cost of revenue (fiscal year 1999) Cost of production materials (fiscal year 1999) $18,243 1467 6.423 Production materials on hand (25 January 1999) Work-in-process and finished goods on hand (25 January 1999) Production materials-days of supply 234 39 6 days