GEA Group AG Accounts Receivable

GEA Group AG Accounts Receivable Calculation

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

GEA Group AG 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.

GEA Group AG's Days Sales Outstanding for the quarter that ended in Mar. 2022 is calculated as:

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

GEA Group AG's Net-Net Working Capital Per Share for the quarter that ended in Mar. 2022 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.

GEA Group AG Accounts Receivable Related Terms

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GEA Group AG Business Description

Industry

Industrials » Industrial Products NAICS : 0 SIC : 0

Comparable Companies

LSE:SMIN LSE:MRO OSTO:BEIJ B SHSE:601615 NYSE:GTLS XTER:RAA SZSE:002202 TSE:6383 NYSE:DCI NYSE:ITT

Traded in Other Exchanges

GEAGF:USA G1A:Mexico 0MPJ:UK G1A:Germany

Address

Peter-Muller-Strasse 12, Dusseldorf, DEU, 40468

Website

https://www.gea.com

GEA is an expert in food processing. It manufactures equipment for separation, fluid handling, dairy processing, and dairy farming, and it designs and constructs process lines or entire plants for customers. Based in Germany, the company is a global market leader, with number-one or number-two positions in its markets. Its separators are used in hundreds of different, tailored applications. Every fourth litre of milk, third instant coffee line, third chicken nugget, and second litre of beer globally is processed using the company's specialised equipment.