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Premier Exhibitions Inc (OTCPK:PRXI)
Accounts Receivable
\$0.89 Mil (As of Aug. 2015)

Accounts Receivable are created when a customer has received a product but has not yet paid for that product. Premier Exhibitions Inc's accounts receivables for the quarter that ended in Aug. 2015 was \$0.89 Mil.

Accounts receivable can be measured by Days Sales Outstanding. Premier Exhibitions Inc's Days Sales Outstanding for the quarter that ended in Aug. 2015 was 12.00.

In Ben Grahams calculation of liquidation value, accounts receivable are only considered to be worth 75% of book value. Premier Exhibitions Inc's Liquidation Value for the quarter that ended in Aug. 2015 was \$-30.46 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.

Premier Exhibitions Inc's Days Sales Outstanding for the quarter that ended in Aug. 2015 is calculated as:

 Days Sales Outstanding = Account Receivable / Revenue * Days in Period = 0.886 / 6.739 * 91 = 12.00

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

Premier Exhibitions Inc's liquidation value for the quarter that ended in Aug. 2015 is calculated as:

 Liquidation value = Cash and Cash Equivalents - Total Liabilities + (0.75 * Account Receivable) + (0.5 * Inventory) = 1.606 - 33.233 + 0.75 * 0.886 + 0.5 * 0.997 = -30.46

* 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.

Premier Exhibitions Inc Annual Data

 Feb06 Feb07 Feb08 Feb09 Feb10 Feb11 Feb12 Feb13 Feb14 Feb15 Accts Rec. 1.59 3.05 3.59 5.07 2.61 2.42 1.39 1.37 1.33 1.42

Premier Exhibitions Inc Quarterly Data

 May13 Aug13 Nov13 Feb14 May14 Aug14 Nov14 Feb15 May15 Aug15 Accts Rec. 1.80 1.34 1.57 1.33 1.59 1.27 1.37 1.42 1.67 0.89
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