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Allocate Software (LSE:ALLA) Accounts Receivable : £9.70 Mil (As of May. 2014)


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What is Allocate Software Accounts Receivable?

Accounts Receivable are created when a customer has received a product but has not yet paid for that product. Allocate Software's accounts receivables for the quarter that ended in May. 2014 was £9.70 Mil.

Accounts receivable can be measured by Days Sales Outstanding. Allocate Software's Days Sales Outstanding for the quarter that ended in May. 2014 was 77.83.

In Ben Graham's calculation of Net-Net Working Capital, accounts receivable are only considered to be worth 75% of book value. Allocate Software's Net-Net Working Capital per share for the quarter that ended in May. 2014 was £-0.04.


Allocate Software Accounts Receivable Historical Data

The historical data trend for Allocate Software'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.

* Premium members only.

Allocate Software Accounts Receivable Chart

Allocate Software Annual Data
Trend May05 May06 May07 May08 May09 May10 May11 May12 May13 May14
Accounts Receivable
Get a 7-Day Free Trial Premium Member Only Premium Member Only 7.56 7.94 12.12 9.43 9.70

Allocate Software Semi-Annual Data
Nov04 May05 Nov05 May06 Nov06 May07 Nov07 May08 Nov08 May09 Nov09 May10 Nov10 May11 Nov11 May12 Nov12 May13 Nov13 May14
Accounts Receivable Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 12.12 12.79 9.43 10.74 9.70

Allocate Software Accounts Receivable Calculation

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


Allocate Software 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.

Allocate Software's Days Sales Outstanding for the quarter that ended in May. 2014 is calculated as:

Days Sales Outstanding
=Accounts Receivable/Revenue*Days in Period
=9.701/22.746*91
=77.83

2. In Ben Graham's calculation of Net-Net Working Capital (NNWC), Allocate Software's accounts receivable are only considered to be worth 75% of book value:

Allocate Software's Net-Net Working Capital Per Share for the quarter that ended in May. 2014 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)
=(13.659+0.75 * 9.701+0.5 * 0-23.654
-0-0)/68.29
=-0.04

* 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.


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.


Allocate Software Accounts Receivable Related Terms

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Allocate Software (LSE:ALLA) Business Description

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Allocate Software PLC is engaged in the development, sale and support of workforce management solutions, and the provision of related IT services to major healthcare, defence, government and commercial customers. The business of the company is focused principally on the Healthcare market in addition to Defence. Its segments are Licence, Subscriptions, Support, and Services. Licence and Subscriptions segments represent the sale of non-cancellable software licence agreements and subscriptions associated with that software. Support and Services segments represent the provision of installation, consulting, training and product support. It operates in UK, Europe, USA and Australia.

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