Switch to:
Bio-Reference Laboratories Inc (NAS:BRLI)
Accounts Receivable
\$285.4 Mil (As of Apr. 2015)

Accounts Receivable are created when a customer has received a product but has not yet paid for that product. Bio-Reference Laboratories Inc's accounts receivables for the quarter that ended in Apr. 2015 was \$285.4 Mil.

Accounts receivable can be measured by Days Sales Outstanding. Bio-Reference Laboratories Inc's Days Sales Outstanding for the quarter that ended in Apr. 2015 was 116.25.

In Ben Grahams calculation of liquidation value, accounts receivable are only considered to be worth 75% of book value. Bio-Reference Laboratories Inc's Liquidation Value for the quarter that ended in Apr. 2015 was \$73.5 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.

Bio-Reference Laboratories 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 = 285.361 / 223.986 * 91 = 116.25

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

Bio-Reference Laboratories 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) = 25.146 - 176.06 + 0.75 * 285.361 + 0.5 * 20.783 = 73.5

* 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.

Bio-Reference Laboratories Inc Annual Data

 Oct05 Oct06 Oct07 Oct08 Oct09 Oct10 Oct11 Oct12 Oct13 Oct14 Accts Rec. 53.1 67.8 86.0 93.7 105.0 129.1 148.1 153.2 206.3 263.3

Bio-Reference Laboratories Inc Quarterly Data

 Jan13 Apr13 Jul13 Oct13 Jan14 Apr14 Jul14 Oct14 Jan15 Apr15 Accts Rec. 161.3 176.4 191.8 206.3 217.7 234.0 251.9 263.3 268.7 285.4
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)