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Johnson & Johnson (NYSE:JNJ)
Accounts Receivable
$11,533 Mil (As of Mar. 2015)

Accounts Receivable are created when a customer has received a product but has not yet paid for that product. Johnson & Johnson's accounts receivables for the quarter that ended in Mar. 2015 was $11,533 Mil.

Accounts receivable can be measured by Days Sales Outstanding. Johnson & Johnson's Days Sales Outstanding for the quarter that ended in Mar. 2015 was 60.57.

In Ben Graham’s calculation of liquidation value, accounts receivable are only considered to be worth 75% of book value. Johnson & Johnson's Liquidation Value for the quarter that ended in Mar. 2015 was $-16,701 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.

Johnson & Johnson's Days Sales Outstanding for the quarter that ended in Mar. 2015 is calculated as:

Days Sales Outstanding
=Account Receivable/Revenue*Days in Period
=11533/17374*91
=60.57

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

Johnson & Johnson's liquidation value for the quarter that ended in Mar. 2015 is calculated as:

Liquidation value
=Cash and Cash Equivalents-Total Liabilities+(0.75 * Account Receivable)+(0.5 * Inventory)
=31319-60712+0.75 * 11533+0.5 * 8085
=-16,701

* All numbers are in