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Red Hat Inc (NYSE:RHT)
Days Sales Outstanding
71.03 (As of Nov. 2014)

Red Hat Inc's account receivable for the three months ended in Nov. 2014 was $355 Mil. Red Hat Inc's revenue for the three months ended in Nov. 2014 was $456 Mil. Hence, Red Hat Inc's days sales outstanding for the three months ended in Nov. 2014 was 71.03.

Red Hat Inc's days sales outstanding declined from Nov. 2013 (71.28) to Nov. 2014 (71.03).


Definition

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.

Account receivable can be measured by Days Sales Outstanding.

Red Hat Inc's Days Sales Outstanding for the fiscal year that ended in Feb. 2014 is calculated as

Days Sales Outstanding=Account Receivable/Revenue*Days in Period
=360.594/1534.615*365
=85.77

Red Hat Inc's Days Sales Outstanding for the quarter that ended in Nov. 2014 is calculated as:

Days Sales Outstanding=Account Receivable/Revenue*Days in Period
=354.87/455.895*365 / 4
=71.03

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.


Explanation

For retailers, when we compare Days Sales Outstanding, it is important to compare the same period in the previous years.


Related Terms

Account Receivable, Revenue


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Red Hat Inc Annual Data

Feb05Feb06Feb07Feb08Feb09Feb10Feb11Feb12Feb13Feb14
DaysSalesOutstanding 89.9276.4580.1588.6371.9768.0274.1682.2083.2185.77

Red Hat Inc Quarterly Data

Aug12Nov12Feb13May13Aug13Nov13Feb14May14Aug14Nov14
DaysSalesOutstanding 60.9467.6679.4657.2156.7671.2882.1857.2158.1171.03
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