Switch to:
Buckeye Technologies, Inc. (NYSE:BKI)
Accounts Receivable
\$128.6 Mil (As of Mar. 2013)

Accounts Receivable are created when a customer has received a product but has not yet paid for that product. Buckeye Technologies, Inc.'s accounts receivables for the quarter that ended in Mar. 2013 was \$128.6 Mil.

Accounts receivable can be measured by Days Sales Outstanding. Buckeye Technologies, Inc.'s Days Sales Outstanding for the quarter that ended in Mar. 2013 was 60.02.

In Ben Grahams calculation of liquidation value, accounts receivable are only considered to be worth 75% of book value. Buckeye Technologies, Inc.'s Liquidation Value for the quarter that ended in Mar. 2013 was \$-16.3 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.

Buckeye Technologies, Inc.'s Days Sales Outstanding for the quarter that ended in Mar. 2013 is calculated as:

 Days Sales Outstanding = Account Receivable / Revenue * Days in Period = 128.624 / 195.562 * 91 = 60.02

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

Buckeye Technologies, Inc.'s liquidation value for the quarter that ended in Mar. 2013 is calculated as:

 Liquidation value = Cash and Cash Equivalents - Total Liabilities + (0.75 * Account Receivable) + (0.5 * Inventory) = 55.22 - 220.524 + 0.75 * 128.624 + 0.5 * 105.058 = -16.3

* 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.

Buckeye Technologies, Inc. Annual Data

 Jun03 Jun04 Jun05 Jun06 Jun07 Jun08 Jun09 Jun10 Jun11 Jun12 Accts Rec. 126.3 112.4 118.2 114.1 116.9 127.5 120.7 191.3 140.6 126.7

Buckeye Technologies, Inc. Quarterly Data

 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Accts Rec. 135.9 142.5 140.6 135.3 136.6 130.8 126.7 131.2 137.9 128.6
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to \$400 per referral. ( Learn More)