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Barnes & Noble Inc (NYSE:BKS)
Accounts Receivable
$44 Mil (As of Apr. 2015)

Accounts Receivable are created when a customer has received a product but has not yet paid for that product. Barnes & Noble Inc's accounts receivables for the quarter that ended in Apr. 2015 was $44 Mil.

Accounts receivable can be measured by Days Sales Outstanding. Barnes & Noble Inc's Days Sales Outstanding for the quarter that ended in Apr. 2015 was 3.38.

In Ben Graham’s calculation of liquidation value, accounts receivable are only considered to be worth 75% of book value. Barnes & Noble Inc's Liquidation Value for the quarter that ended in Apr. 2015 was $-1,259 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.

Barnes & Noble Inc's Days Sales Outstanding for the quarter that ended in Apr. 2015 is calculated as:

Days Sales Outstanding
=Account Receivable/Revenue*Days in Period
=43.88/1184.079*91
=3.38

2. In Ben Graham’s calculation of liquidation value, Barnes & Noble Inc's accounts receivable are only considered to be worth 75% of book value:

Barnes & Noble Inc's liquidation value for the quarter that ended in Apr. 2015 is calculated as:

Liquidation value
=Cash and Cash Equivalents-Total Liabilities+(0.75 * Account Receivable)+(0.5 * Inventory)
=74.36-2040.147+0.75 * 43.88+0.5 * 1348.239
=-1,259

* 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

Days Sales Outstanding, Revenue, NCAV, Cash and Cash Equivalents, Total Liabilities, Inventory


Historical Data

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

Barnes & Noble Inc Annual Data

Jan06Jan07Jan08Jan09Apr10Apr11Apr12Apr13Apr14Apr15
Accts Rec. 9910011281478291705444

Barnes & Noble Inc Quarterly Data

Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14Jan15Apr15
Accts Rec. 396701541932975412015826244
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