Switch to:
Esterline Technologies Corp (NYSE:ESL)
Accounts Receivable
\$422 Mil (As of Sep. 2016)

Accounts Receivable are created when a customer has received a product but has not yet paid for that product. Esterline Technologies Corp's accounts receivables for the quarter that ended in Sep. 2016 was \$422 Mil.

Accounts receivable can be measured by Days Sales Outstanding. Esterline Technologies Corp's Days Sales Outstanding for the quarter that ended in Sep. 2016 was 70.83.

In Ben Grahams calculation of liquidation value, accounts receivable are only considered to be worth 75% of book value. Esterline Technologies Corp's Liquidation Value for the quarter that ended in Sep. 2016 was \$-631 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.

Esterline Technologies Corp's Days Sales Outstanding for the quarter that ended in Sep. 2016 is calculated as:

 Days Sales Outstanding = Account Receivable / Revenue * Days in Period = 422.073 / 543.752 * 91 = 70.83

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

Esterline Technologies Corp's liquidation value for the quarter that ended in Sep. 2016 is calculated as:

 Liquidation value = Cash and Cash Equivalents - Total Liabilities + (0.75 * Account Receivable) + (0.5 * Inventory) = 258.52 - 1431.474 + 0.75 * 422.073 + 0.5 * 450.206 = -631

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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 local exchange's currency.

Esterline Technologies Corp Annual Data

 Oct07 Oct08 Oct09 Oct10 Oct11 Oct12 Oct13 Sep14 Sep15 Sep16 Accts Rec. 262 298 271 309 370 383 384 0 381 422

Esterline Technologies Corp Quarterly Data

 Sep14 Oct14 Jan15 Apr15 Jul15 Sep15 Dec15 Mar16 Jun16 Sep16 Accts Rec. 0 380 342 385 374 381 342 374 394 422
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)