Accounts Receivable are created when a customer has received a product but has not yet paid for that product. Education Management's accounts receivables for the quarter that ended in Jun. 2014 was $210 Mil.
Accounts receivable can be measured by Days Sales Outstanding.
Education Management's Days Sales Outstanding for the quarter that ended in Jun. 2014 was 38.09.
In Ben Graham's calculation of Net-Net Working Capital, accounts receivable are only considered to be worth 75% of book value. Education Management's Net-Net Working Capital per share for the quarter that ended in Jun. 2014 was $-13.75.
Education Management Accounts Receivable Historical Data
The historical data trend for Education Management's Accounts Receivable can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
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.
Education Management's Days Sales Outstanding for the quarter that ended in Jun. 2014 is calculated as:
2. In Ben Graham's calculation of Net-Net Working Capital (NNWC), Education Management's accounts receivable are only considered to be worth 75% of book value:
Education Management's Net-Net Working Capital Per Share for the quarter that ended in Jun. 2014 is calculated as:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange 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.
Education Management Accounts Receivable Related Terms
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Education Management (Education Management) Business Description
Education Management Corp provides post-secondary education in North America. It offers academic programs to students through campus-based and online instruction, or through a combination of both. The company operates in four segments including The Art Institutes; Argosy University; Brown Mackie Colleges and South University. The Art Institutes focus on applied arts in creative professions such as graphic design, media arts, and animation, culinary arts. Brown Mackie Colleges offer flexible Associate's and non-degree diploma programs that enable students to develop skills for entry-level positions in high-demand vocational specialties. South University offers academic programs in health profession and business disciplines, health sciences, nursing, criminal justice, psychology, and IT.
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