Jul. 30 at 11:04 PM
$SMCI $DELL's growth is artifically inflated by their debts yet their trading at ATH's SMCI on the other hand has been attacked by the media constantly, despite growing organically.
Dell owes suppliers about
$11.17B more than customers owe Dell. Its accounts payable are roughly 1.33× receivables. This means Dell is receiving substantial supplier credit while it sells and finances AI systems.
Dell also separately carries a
$14.3B Dell Financial Services financing-receivable portfolio, so part of its growth involves Dell extending credit to customers while suppliers finance Dell upstream.
SMCI's accounts receivables dropped by
$3B however they also dropped their accounts payable by over
$10B
Who is more likely to pay back its debts, and mantain a good supplier relationship?
DELL OWES MUCH MORE THAN IT IS OWED
