Switch to:
Alphabet Inc  (NAS:GOOG) Accounts Receivable: \$14,003 Mil (As of Jun. 2017)

Accounts Receivable are created when a customer has received a product but has not yet paid for that product. Alphabet Inc's accounts receivables for the quarter that ended in Jun. 2017 was \$14,003 Mil.

Accounts receivable can be measured by Days Sales Outstanding. Alphabet Inc's Days Sales Outstanding for the quarter that ended in Jun. 2017 was 49.13.

In Ben Graham's calculation of liquidation value, accounts receivable are only considered to be worth 75% of book value. Alphabet Inc's Net-Net Working Capital for the quarter that ended in Jun. 2017 was \$75,079 Mil.

Historical Data

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

Alphabet Inc Annual Data

 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Accounts Receivable 7,885.00 8,882.00 9,383.00 11,556.00 14,137.00

Alphabet Inc Quarterly Data

 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Accounts Receivable 11,686.00 11,979.00 14,137.00 12,913.00 14,003.00

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.

Alphabet Inc's Days Sales Outstanding for the quarter that ended in Jun. 2017 is calculated as:

 Days Sales Outstanding = Accounts Receivable / Revenue * Days in Period = 14003 / 26010 * 91 = 49.13

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

Alphabet Inc'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) = 94713 - 30335 + 0.75 * 14003 + 0.5 * 398 = 75,079

* 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 the Internet

###### 3 Stocks to Buy and Hold Forever

- Fool 2017-10-18 08:08:00

- MarketWatch 2017-10-18 05:06:00

###### Amazon's Latest Tax Penalty Should Be a Red Flag for Tech Companies

- Fool 2017-10-17 23:08:00

###### Baidu aims to launch self-driving bus in China next year

- MarketWatch 2017-10-17 22:01:00

###### Amazon, Apple, Google and Facebook will all go away within 50 years, says author

- MarketWatch 2017-10-17 19:33:00

###### Magic Leap adds another \$502 million in funding

- MarketWatch 2017-10-17 18:40:00

###### Alphabet’s Sidewalk Labs to build tech-focused Toronto development

- MarketWatch 2017-10-17 18:30:00

###### Netflix Says Become Nation Couch Potatoes

- Seekingalpha 2017-10-17 17:17:29

- MarketWatch 2017-10-17 16:58:00

###### I’m buying this stock for the 5G wireless revolution

- MarketWatch 2017-10-17 13:55:00

###### T Time Look Gift Horse Mouth

- Seekingalpha 2017-10-17 13:11:28

###### Bought Corbion Order Continue Investing Technology Terravia

- Seekingalpha 2017-10-17 11:44:31

###### Netflix shows that it has no real competitors

- MarketWatch 2017-10-17 11:08:00

- Fool 2017-10-17 10:00:00

###### Six differences in the stock market between today and 1987

- MarketWatch 2017-10-17 09:52:00

###### Can Roku Compete in Streaming Video on Demand?

- Fool 2017-10-17 09:00:00

###### How You Should Be Thinking About Autonomous Driving

- Fool 2017-10-17 08:16:00

###### Team End September 2017 Review

- Seekingalpha 2017-10-16 16:15:42

###### Alibaba Vs Amazon Cloud Wars

- Seekingalpha 2017-10-16 15:10:55

###### The moment of truth for U.S. stocks will take place in the next two weeks

- MarketWatch 2017-10-16 14:41:00

###### Is Your Wi-Fi Connection Safe? Here's What You Need to Know About the KRACK Attack

- Fool 2017-10-16 14:19:00

###### A Foolish Take: A Majority of Americans Get News From Social Media

- Fool 2017-10-16 13:05:00

###### Nokia Growth Partners Leads Investment Securityscorecard

- Seekingalpha 2017-10-16 12:08:19

###### Online Wild West Facebook Finally Implements Content Moderation

- Seekingalpha 2017-10-16 12:06:50

###### Brick-and-mortar stores deserve the heat from Amazon

- MarketWatch 2017-10-16 09:19:00

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)