Switch to:
HP Inc  (NYSE:HPQ) Accounts Receivable: \$4,233 Mil (As of Jul. 2017)

Accounts Receivable are created when a customer has received a product but has not yet paid for that product. HP Inc's accounts receivables for the quarter that ended in Jul. 2017 was \$4,233 Mil.

Accounts receivable can be measured by Days Sales Outstanding. HP Inc's Days Sales Outstanding for the quarter that ended in Jul. 2017 was 29.58.

In Ben Graham's calculation of liquidation value, accounts receivable are only considered to be worth 75% of book value. HP Inc's Net-Net Working Capital for the quarter that ended in Jul. 2017 was \$-22,519 Mil.

Historical Data

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

HP Inc Annual Data

 Oct08 Oct09 Oct10 Oct11 Oct12 Oct13 Oct14 Oct15 Oct16 Oct17 Accounts Receivable 15,876.00 13,832.00 4,825.00 4,114.00 4,414.00

HP Inc Quarterly Data

 Jan13 Apr13 Jul13 Oct13 Jan14 Apr14 Jul14 Oct14 Jan15 Apr15 Jul15 Oct15 Jan16 Apr16 Jul16 Oct16 Jan17 Apr17 Jul17 Oct17 Accounts Receivable 4,114.00 3,478.00 3,771.00 4,233.00 4,414.00

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.

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

 Days Sales Outstanding = Accounts Receivable / Revenue * Days in Period = 4233 / 13060 * 91 = 29.58

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

HP Inc's liquidation value for the quarter that ended in Jul. 2017 is calculated as:

 Liquidation value = Cash And Cash Equivalents - Total Liabilities + (0.75 * Accounts Receivable) + (0.5 * Total Inventories) = 7987 - 36273 + 0.75 * 4233 + 0.5 * 5184 = -22,519

* 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

###### Hp Inc Better Looking Twin 3 Percent Yield

- Seekingalpha 2017-11-23 08:28:20

###### #AlphaRising is THRILLED Meg Whitman is Leaving HPE

- theStreet 2017-11-23 08:00:00

###### Hewlett Packard (HPE) CEO Whitman to Step Down, Shares Drop

- Zacks 2017-11-23 07:35:00

###### Zimbabwe and Bitcoin Remain Entwined; Microsoft's Holiday Wish List -- ICYMI

- theStreet 2017-11-22 18:07:00

###### The Biggest Losers: Two HPs for the Price of One

- Barron's 2017-11-22 16:47:00

###### Hewlett Packard Enterprise Company Chaos

- Seekingalpha 2017-11-22 13:52:21

###### Hewlett Packard, and HP Drop: Street Surprised by Meg Whitman's Departure

- Barron's 2017-11-22 12:37:04

###### HPE's Meg Whitman Is Stepping Down on Her Own Terms

- theStreet 2017-11-22 12:18:00

###### Hewlett and HP Fall in Tandem: Street Surprised by Whitman Exit

- Barron's 2017-11-22 10:58:00

###### Will HP Enterprise Stock Ever Breath Again Without CEO Meg Whitman?

- theStreet 2017-11-22 10:41:00

###### Morning Movers: Thankful for More Gains; Thankful for Deere & GameStop

- Barron's 2017-11-22 09:35:07

###### HP (HPQ) Reports Strong Q4 Earnings, Falls on Soft Q1 View

- Zacks 2017-11-22 09:25:00

###### Nothing Wrong Hp Inc

- Seekingalpha 2017-11-22 08:57:24

- cnbc 2017-11-22 08:36:21

###### S&P eyes another record, but Meg Whitman’s farewell could prove a drag

- MarketWatch 2017-11-22 06:30:00

###### Wall Street Breakfast Traders Digest Fed Minutes Thanksgiving

- Seekingalpha 2017-11-22 06:25:03

###### Pilgrim's Pride, Discovery Communications, Salesforce.com, Hewlett Packard Enterprise and HP highlighted as Zacks Bull and Bear of the Day

- Zacks 2017-11-22 06:20:00

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)