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Zoltek Companies, Inc. (NAS:ZOLT)
Accounts Receivable
\$26.2 Mil (As of Dec. 2013)

Accounts Receivable are created when a customer has received a product but has not yet paid for that product. Zoltek Companies, Inc.'s accounts receivables for the quarter that ended in Dec. 2013 was \$26.2 Mil.

Accounts receivable can be measured by Days Sales Outstanding. Zoltek Companies, Inc.'s Days Sales Outstanding for the quarter that ended in Dec. 2013 was 67.97.

In Ben Grahams calculation of liquidation value, accounts receivable are only considered to be worth 75% of book value. Zoltek Companies, Inc.'s Liquidation Value for the quarter that ended in Dec. 2013 was \$51.4 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.

Zoltek Companies, Inc.'s Days Sales Outstanding for the quarter that ended in Dec. 2013 is calculated as:

 Days Sales Outstanding = Account Receivable / Revenue * Days in Period = 26.164 / 35.123 * 91 = 67.97

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

Zoltek Companies, Inc.'s liquidation value for the quarter that ended in Dec. 2013 is calculated as:

 Liquidation value = Cash and Cash Equivalents - Total Liabilities + (0.75 * Account Receivable) + (0.5 * Inventory) = 42.401 - 46.104 + 0.75 * 26.164 + 0.5 * 71.005 = 51.4

* 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.

Zoltek Companies, Inc. Annual Data

 Sep04 Sep05 Sep06 Sep07 Sep08 Sep09 Sep10 Sep11 Sep12 Sep13 Accts Rec. 11.6 11.1 17.0 37.5 42.7 30.5 22.8 30.4 35.9 31.7

Zoltek Companies, Inc. Quarterly Data

 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Accts Rec. 30.4 33.1 35.9 37.8 35.9 29.4 25.3 24.4 31.7 26.2
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