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GuruFocus has detected 8 Warning Signs with Two Harbors Investment Corp $TWO.
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Two Harbors Investment Corp (NYSE:TWO)
Change In Receivables
$-3.7 Mil (As of Sep. 2016)

Two Harbors Investment Corp's change in receivables for the quarter that ended in Sep. 2016 was $-3.7 Mil. It means Two Harbors Investment Corp's accounts receivables declined by $3.7 Mil from Jun. 2016 to Sep. 2016 .

Two Harbors Investment Corp's change in receivables for the fiscal year that ended in Dec. 2015 was $19.0 Mil. It means Two Harbors Investment Corp's accounts receivables increased by $19.0 Mil from Dec. 2014 to Dec. 2015 .

Two Harbors Investment Corp's accounts receivables for the quarter that ended in Sep. 2016 was $123.2 Mil.

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. Two Harbors Investment Corp's days sales outstanding for the three months ended in Sep. 2016 was 66.57.

In Ben Graham’s calculation of liquidation value, Apple Inc's accounts receivables are only considered to be worth 75% of book value. Two Harbors Investment Corp's liquidation value for the three months ended in Sep. 2016 was $-3,256.2 Mil.


Definition

Change In Accounts Receivable relative to the previous period. It is any increase or decrease in the cash a company is owed by its customers.


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.

Two Harbors Investment 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
=123.184/168.862*91
=66.57

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

Two Harbors Investment 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)
=14973.043-18321.655+0.75 * 123.184+0.5 * 0
=-3,256.2

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


Related Terms

Days Sales Outstanding, Account Receivable, Revenue, NCAV, Cash and Cash Equivalents, Total Liabilities, Inventory


Historical Data

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

Two Harbors Investment Corp Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
ChangeInReceivables 0.00.00.0-2.6-2.8-18.2-55.226.4-25.619.0

Two Harbors Investment Corp Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
ChangeInReceivables -4.2-1.7-12.53.14.33.68.0-5.21.2-3.7
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