Fairfax Financial Holdings (Fairfax Financial Holdings) Accounts Receivable

: $926 Mil (As of Dec. 2023)

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Accounts Receivable are created when a customer has received a product but has not yet paid for that product. Fairfax Financial Holdings's accounts receivables for the quarter that ended in Dec. 2023 was $926 Mil.

Accounts receivable can be measured by Days Sales Outstanding. Fairfax Financial Holdings's Days Sales Outstanding for the quarter that ended in Dec. 2023 was 10.94.

In Ben Graham's calculation of Net-Net Working Capital, accounts receivable are only considered to be worth 75% of book value. Fairfax Financial Holdings's Net-Net Working Capital per share for the quarter that ended in Dec. 2023 was $-2,592.71.

Fairfax Financial Holdings Accounts Receivable Historical Data

The historical data trend for Fairfax Financial Holdings'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.

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Fairfax Financial Holdings Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Accounts Receivable

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14,590.80

16,349.30

650.10

648.90

926.10

Fairfax Financial Holdings Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Accounts Receivable	Get a 7-Day Free Trial															648.90	613.90	801.50	862.50	926.10

Fairfax Financial Holdings Accounts Receivable Calculation

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

Fairfax Financial Holdings 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.

Fairfax Financial Holdings's Days Sales Outstanding for the quarter that ended in Dec. 2023 is calculated as:

	Days Sales Outstanding
=	Accounts Receivable	/	Revenue	*	Days in Period
=	926.1	/	7726.3	*	91
=	10.94

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

Fairfax Financial Holdings's Net-Net Working Capital Per Share for the quarter that ended in Dec. 2023 is calculated as:

	Net-Net Working Capital Per Share
=	(Cash And Cash Equivalents	+	0.75 * Accounts Receivable	+	0.5 * Total Inventories	-	Total Liabilities
-	Preferred Stock	-	Minority Interest)	/	Shares Outstanding (EOP)
=	(7962.5	+	0.75 * 926.1	+	0.5 * 0	-	64284.2
-	1335.5	-	4750.4)	/	23.8025
=	-2,592.71

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.

Fairfax Financial Holdings Accounts Receivable Related Terms

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Fairfax Financial Holdings (Fairfax Financial Holdings) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Insurance » Fairfax Financial Holdings Ltd (OTCPK:FRFHF) » Definitions » Accounts Receivable

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Address

95 Wellington Street West, Suite 800, Toronto, ON, CAN, M5J 2N7

Website

https://www.fairfax.ca

Fairfax provides reinsurance and property and casualty insurance in Canada, the United States, and other international markets. The company also has some noninsurance operations such as restaurants. Fairfax has been led by Prem Watsa, its chairman and CEO, since its formation in 1985.