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Red Hat, Inc. (NYSE:RHT)
Days Sales Outstanding
81.95 (As of Feb. 2014)

Red Hat, Inc.'s account receivable for the three months ended in Feb. 2014 was $361 Mil. Red Hat, Inc.'s revenue for the three months ended in Feb. 2014 was $400 Mil. Hence, Red Hat, Inc.'s days sales outstanding for the three months ended in Feb. 2014 was 81.95.

Red Hat, Inc.'s days sales outstanding increased from Feb. 2013 (79.24) to Feb. 2014 (81.95).


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 Feb. 2014 is calculated as:

Days Sales Outstanding=Account Receivable/Revenue*Days in Period
=360.594/400.397*91
=81.95

* 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 96.5378.4180.1588.6371.9768.0274.1682.2083.2185.77

Red Hat, Inc. Quarterly Data

Nov11Feb12May12Aug12Nov12Feb13May13Aug13Nov13Feb14
DaysSalesOutstanding 64.7878.1856.6260.7767.4879.2457.0556.6071.0881.95
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