Switch to:
Bank of America Corporation  (NYSE:BAC) Accounts Receivable: \$59,342 Mil (As of Jun. 2017)

Accounts Receivable are created when a customer has received a product but has not yet paid for that product. Bank of America Corporation's accounts receivables for the quarter that ended in Jun. 2017 was \$59,342 Mil.

Accounts receivable can be measured by Days Sales Outstanding. Bank of America Corporation's Days Sales Outstanding for the quarter that ended in Jun. 2017 was 237.20.

In Ben Graham's calculation of liquidation value, accounts receivable are only considered to be worth 75% of book value. Bank of America Corporation's Net-Net Working Capital for the quarter that ended in Jun. 2017 was \$-1,770,180 Mil.

Historical Data

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

* Premium members only.

Bank of America Corporation Annual Data

 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Accounts Receivable 71,467.00 59,448.00 191,785.00 58,312.00 58,759.00

Bank of America Corporation Quarterly Data

 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Accounts Receivable 54,116.00 58,759.00 209,044.00 59,342.00 55,855.00

Calculation

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

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.

Bank of America Corporation's Days Sales Outstanding for the quarter that ended in Jun. 2017 is calculated as:

 Days Sales Outstanding = Accounts Receivable / Revenue * Days in Period = 59342 / 22829 * 91 = 237.20

2. In Ben Graham's calculation of liquidation value, Bank of America Corporation's accounts receivable are only considered to be worth 75% of book value:

Bank of America Corporation's liquidation value for the quarter that ended in Jun. 2017 is calculated as:

 Liquidation value = Cash And Cash Equivalents - Total Liabilities + (0.75 * Accounts Receivable) + (0.5 * Total Inventories) = 168856 - 1983542 + 0.75 * 59342 + 0.5 * 0 = -1,770,180

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

Related Terms

From GuruFocus

Should you buy Advanced Micro Devices, Bank of America, ManpowerGroup, Skechers, or AT&T?

By PRNewswire about BAC 2017-10-20 09:00:21

From the Internet

Dow and S&P 500 End Week With Perfect Streak of Records, Nasdaq Close Behind

- theStreet 2017-10-20 19:00:00

Why Wealth Management Is Such Good Business for Banks

- Fool 2017-10-20 16:58:00

Bank of America Is Continuing to Slash Expenses

- Fool 2017-10-20 14:24:00

Bank Stock Roundup: Q3 Earnings Impress, BofA, PNC Financial Beat Estimates

- Zacks 2017-10-20 13:49:00

Financial ETF jumps to 10-year high as budget bill passage boosts bond yields

- MarketWatch 2017-10-20 11:38:00

Q3 Beats from Big Banks Fail to Boost Financial ETFs

- Zacks 2017-10-20 11:00:00

Will Spdr Dividend Etf Sdy Underperform 2018

- Seekingalpha 2017-10-20 10:17:53

Bank stocks tracker jumps toward 10-year high after budget bill passes

- MarketWatch 2017-10-20 08:43:00

Wall Street’s Robots Still Have a Lot to Learn About Being a Human Trader

- Bloomberg 2017-10-20 05:00:00

Tracking Ken Fishers Fisher Asset Management Portfolio Q3 2017 Update

- Seekingalpha 2017-10-20 04:16:15

Was Wells Fargo’s Negative Loan Growth Last Quarter the Canary in the Coal Mine?

- Fool 2017-10-19 22:47:00

PayPal's Strong Earnings Show Just How Loyal Customers Are to its Platform

- theStreet 2017-10-19 21:13:00

Ex-Goldman Tech Chief Sees Finance's AI Ascendance in 5 Years

- Bloomberg 2017-10-19 17:47:04

Jpmorgan Chase Just One Bank Stock

- Seekingalpha 2017-10-19 12:58:25

1 Reason to Be Optimistic About Bank of America Stock

- Fool 2017-10-19 10:11:00

Wall Street Has Changed A Lot Over the Past 30 Years

- theStreet 2017-10-19 10:00:00

Bank America Best Bank Buy Next 5 Years

- Seekingalpha 2017-10-19 08:00:06

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to \$400 per referral. ( Learn More)