Ali Alghanim Sons Automotive Co KSC (KUW:ALG) Accounts Receivable : KWD10.5 Mil (As of Mar. 2024)

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What is Ali Alghanim Sons Automotive Co KSC Accounts Receivable?

Accounts Receivable are created when a customer has received a product but has not yet paid for that product. Ali Alghanim Sons Automotive Co KSC's accounts receivables for the quarter that ended in Mar. 2024 was KWD10.5 Mil.

Accounts receivable can be measured by Days Sales Outstanding. Ali Alghanim Sons Automotive Co KSC's Days Sales Outstanding for the quarter that ended in Mar. 2024 was 14.99.

In Ben Graham's calculation of Net-Net Working Capital, accounts receivable are only considered to be worth 75% of book value. Ali Alghanim Sons Automotive Co KSC's Net-Net Working Capital per share for the quarter that ended in Mar. 2024 was KWD-0.34.

Ali Alghanim Sons Automotive Co KSC Accounts Receivable Historical Data

The historical data trend for Ali Alghanim Sons Automotive Co KSC's Accounts Receivable can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Ali Alghanim Sons Automotive Co KSC Accounts Receivable Chart

Ali Alghanim Sons Automotive Co KSC Annual Data

Trend

Dec21

Dec22

Dec23

Accounts Receivable

5.59

5.51

5.77

Ali Alghanim Sons Automotive Co KSC Quarterly Data
	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Accounts Receivable	Get a 7-Day Free Trial							8.52	9.64	9.44	5.77	10.55

Ali Alghanim Sons Automotive Co KSC Accounts Receivable Calculation

Accounts Receivable is money owed to a business by customers and shown on its Balance Sheet as an asset.

Ali Alghanim Sons Automotive Co KSC Accounts Receivable 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.

Ali Alghanim Sons Automotive Co KSC's Days Sales Outstanding for the quarter that ended in Mar. 2024 is calculated as:

	Days Sales Outstanding
=	Accounts Receivable	/	Revenue	*	Days in Period
=	10.548	/	64.227	*	91
=	14.99

2. In Ben Graham's calculation of Net-Net Working Capital (NNWC), Ali Alghanim Sons Automotive Co KSC's accounts receivable are only considered to be worth 75% of book value:

Ali Alghanim Sons Automotive Co KSC's Net-Net Working Capital Per Share for the quarter that ended in Mar. 2024 is calculated as:

	Net-Net Working Capital Per Share
=	(Cash And Cash Equivalents	+	0.75 * Accounts Receivable	+	0.5 * Total Inventories	-	Total Liabilities
-	Preferred Stock	-	Minority Interest)	/	Shares Outstanding (EOP)
=	(18.998	+	0.75 * 10.548	+	0.5 * 74.175	-	151.346
-	0	-	6.895)	/	273.994
=	-0.34

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.

Ali Alghanim Sons Automotive Co KSC Accounts Receivable Related Terms

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Ali Alghanim Sons Automotive Co KSC (KUW:ALG) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Ali Alghanim Sons Automotive Co KSC (KUW:ALG) » Definitions » Accounts Receivable

Comparable Companies

Traded in Other Exchanges

N/A

Address

Airport Road 55, P.O. Box 21540, Safat, Opposite Kaifan Telecommunication, Shuwaikh, KWT, 13076

Website

https://alg.com.kw

Ali Alghanim Sons Automotive Co KSC is engaged in the automotive business. The Primary Activities of the Company are selling and purchasing cars and spare parts, importing and exporting light and heavy vehicles and cars, renting cars, maintaining light & heavy vehicles and cars, trading auto spare parts, and renting equipment and their maintenance. The Group is divided into four main geographical segments which are the State of Kuwait, Iraq, Egypt and the United Arab Emirates. The majority is derived from Kuwait.