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TIBCO Software Inc (NAS:TIBX)
Accounts Receivable
\$195 Mil (As of Aug. 2014)

Accounts Receivable are created when a customer has received a product but has not yet paid for that product. TIBCO Software Inc's accounts receivables for the quarter that ended in Aug. 2014 was \$195 Mil.

Accounts receivable can be measured by Days Sales Outstanding. TIBCO Software Inc's Days Sales Outstanding for the quarter that ended in Aug. 2014 was 69.58.

In Ben Grahams calculation of liquidation value, accounts receivable are only considered to be worth 75% of book value. TIBCO Software Inc's Liquidation Value for the quarter that ended in Aug. 2014 was \$-364 Mil.

Definition

Accounts Receivable is money owed to a business by customers and shown on its Balance Sheet as an asset.

Explanation

1. Accounts Receivable are created when a customer has received a product but has not yet paid for that product. Days sales outstanding measures of the average number of days that a company takes to collect revenue after a sale has been made. It is a financial ratio that illustrates how well a company's accounts receivables are being managed.

TIBCO Software Inc's Days Sales Outstanding for the quarter that ended in Aug. 2014 is calculated as:

 Days Sales Outstanding = Account Receivable / Revenue * Days in Period = 194.896 / 255.602 * 91 = 69.58

2. In Ben Grahams calculation of liquidation value, TIBCO Software Inc's accounts receivable are only considered to be worth 75% of book value:

TIBCO Software Inc's liquidation value for the quarter that ended in Aug. 2014 is calculated as:

 Liquidation value = Cash and Cash Equivalents - Total Liabilities + (0.75 * Account Receivable) + (0.5 * Inventory) = 532.454 - 1043.05 + 0.75 * 194.896 + 0.5 * 0 = -364

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Be Aware

Net receivables tells us a great deal about the different competitors in the same industry. In competitive industries, some attempt to gain advantage by offering better credit terms, causing increase in sales and receivables.

If company consistently shows lower % Net receivables to gross sales than competitors, then it usually has some kind of competitive advantage which requires further digging.

Average Days Sales Outstanding is a good indicator for measuring a companys sales channel and customers. A company may book great revenue and earnings growth but never receive payment from their customers. This may force a write-off in the future and depress future earnings.

Related Terms

Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

TIBCO Software Inc Annual Data

 Nov04 Nov05 Nov06 Nov07 Nov08 Nov09 Nov10 Nov11 Nov12 Nov13 Accts Rec. 109 121 149 162 133 155 186 196 234 210

TIBCO Software Inc Quarterly Data

 May12 Aug12 Nov12 Feb13 May13 Aug13 Nov13 Feb14 May14 Aug14 Accts Rec. 175 207 234 168 188 183 210 206 212 195
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