Accounts Receivable are created when a customer has received a product but has not yet paid for that product. Cardinal Health's accounts receivables for the quarter that ended in Dec. 2023 was $11,788 Mil.
Accounts receivable can be measured by Days Sales Outstanding.
Cardinal Health's Days Sales Outstanding for the quarter that ended in Dec. 2023 was 18.72.
In Ben Graham's calculation of Net-Net Working Capital, accounts receivable are only considered to be worth 75% of book value. Cardinal Health's Net-Net Working Capital per share for the quarter that ended in Dec. 2023 was $-112.39.
Cardinal Health Accounts Receivable Historical Data
The historical data trend for Cardinal Health'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.
Accounts Receivable is money owed to a business by customers and shown on its Balance Sheet as an asset.
Cardinal Health 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.
Cardinal Health's Days Sales Outstanding for the quarter that ended in Dec. 2023 is calculated as:
2. In Ben Graham's calculation of Net-Net Working Capital (NNWC), Cardinal Health's accounts receivable are only considered to be worth 75% of book value:
Cardinal Health's Net-Net Working Capital Per Share for the quarter that ended in Dec. 2023 is calculated as:
* 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.
Cardinal Health Accounts Receivable Related Terms
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Cardinal Health (Cardinal Health) Business Description
Cardinal Health is one of three leading pharmaceutical wholesalers in the U.S., engaged in sourcing and distributing of branded, generic, and specialty pharmaceutical products to pharmacies (retail chains, independent, and mail order), hospitals networks, and healthcare providers. Along with Cencora and McKesson, the three comprise well over 90% of the U.S. pharmaceutical wholesale industry. Cardinal Health also supplies medical-surgical products and equipment to healthcare facilities in North America, Europe, and Asia.
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