Switch to:
Microsoft Corp  (NAS:MSFT) Accounts Receivable: \$19,792 Mil (As of Jun. 2017)

Accounts Receivable are created when a customer has received a product but has not yet paid for that product. Microsoft Corp's accounts receivables for the quarter that ended in Jun. 2017 was \$19,792 Mil.

Accounts receivable can be measured by Days Sales Outstanding. Microsoft Corp's Days Sales Outstanding for the quarter that ended in Jun. 2017 was 77.46.

In Ben Graham's calculation of liquidation value, accounts receivable are only considered to be worth 75% of book value. Microsoft Corp's Net-Net Working Capital for the quarter that ended in Jun. 2017 was \$-19,777 Mil.

Historical Data

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

Microsoft Corp Annual Data

 Jun08 Jun09 Jun10 Jun11 Jun12 Jun13 Jun14 Jun15 Jun16 Jun17 Accounts Receivable 17,486.00 19,544.00 17,908.00 18,277.00 19,792.00

Microsoft Corp Quarterly Data

 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Accounts Receivable 18,277.00 11,129.00 14,343.00 12,882.00 19,792.00

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.

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

 Days Sales Outstanding = Accounts Receivable / Revenue * Days in Period = 19792 / 23317 * 91 = 77.46

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

Microsoft Corp'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) = 132981 - 168692 + 0.75 * 19792 + 0.5 * 2181 = -19,777

* 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

###### IBM Blockchain Payments Arenâ€™t an Upbeat Signal for Cryptocurrencies

From the Internet

###### Game Plan Week Cramers Mad Money 10 20 17

- Seekingalpha 2017-10-23 07:41:47

###### Stocks are incredibly overbought — why that’s not nearly as scary as it sounds

- MarketWatch 2017-10-23 06:24:00

###### Apple and Nike show that stock performance is linked to how CEOs spend money

- MarketWatch 2017-10-23 00:01:00

###### Futures and Dollar Rise as Trump Narrows Down Pool for Next Fed Chair

- theStreet 2017-10-22 18:26:00

###### Podcast Samsung Developer Conference Alphabet Lyft Microsoft Windows 10 Creators Update

- Seekingalpha 2017-10-22 12:16:06

###### Big Blue's Big Bounce, and What Blew Housing Starts Down in September

- Fool 2017-10-22 11:45:00

###### Why Wall Street Is Suddenly Scared of Amazon

- theStreet 2017-10-22 10:47:00

###### Third-Quarter U.S. Economic Growth to Reveal Hurricane Damage in Week Ahead

- theStreet 2017-10-22 10:00:00

###### A new class of billionaire philanthropists are coming out of media and tech

- cnbc 2017-10-22 09:58:52

###### Software M&A Poised for Rebound: MoffettNathanson

- theStreet 2017-10-22 06:01:00

###### 2 Winning Tech IPOs of 2017

- Fool 2017-10-21 10:46:00

###### Software Firms Like Oracle, Salesforce and Adobe Are Well-Positioned for Deals

- theStreet 2017-10-21 09:00:00

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)