Switch to:
International Business Machines Corp  (NYSE:IBM) Accounts Receivable: \$9,395 Mil (As of Jun. 2017)

Accounts Receivable are created when a customer has received a product but has not yet paid for that product. International Business Machines Corp's accounts receivables for the quarter that ended in Jun. 2017 was \$9,395 Mil.

Accounts receivable can be measured by Days Sales Outstanding. International Business Machines Corp's Days Sales Outstanding for the quarter that ended in Jun. 2017 was 44.44.

In Ben Graham's calculation of liquidation value, accounts receivable are only considered to be worth 75% of book value. International Business Machines Corp's Net-Net Working Capital for the quarter that ended in Jun. 2017 was \$-81,933 Mil.

Historical Data

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

International Business Machines Corp Annual Data

 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Accounts Receivable 12,540.00 12,049.00 11,996.00 9,534.00 10,239.00

International Business Machines 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 9,912.00 9,164.00 10,239.00 9,507.00 9,395.00

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.

International Business Machines 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 = 9395 / 19289 * 91 = 44.44

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

International Business Machines 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) = 12295 - 102076 + 0.75 * 9395 + 0.5 * 1604 = -81,933

* 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

###### Bought Corbion Order Continue Investing Technology Terravia

- Seekingalpha 2017-10-17 11:44:31

###### 5 of the Best Tech Stocks to Buy Ahead of Q3 Earnings

- Zacks 2017-10-17 08:20:00

###### Netflix Might Someday Be Worth \$1 Trillion Along With Apple and Amazon

- theStreet 2017-10-17 08:00:00

###### Ibm Reports Earnings Death Cross Positive Weekly Chart

- Seekingalpha 2017-10-17 07:30:31

###### Salesforce Goes Live on Amazon Web Services in Australia

- Zacks 2017-10-17 07:23:00

###### Vanguard’s boss has a warning for a market that’s hellbent on Dow 23,000

- MarketWatch 2017-10-17 07:19:00

###### How to Sleep Well in These Markets (and What to Do With Apple): Market Recon

- theStreet 2017-10-17 07:17:00

###### Futures point to a flat open as investors gear up for Goldman Sachs, Morgan Stanley earnings

- cnbc 2017-10-17 06:48:42

###### Goldman Sachs, Netflix and Uber - 5 Things You Must Know Before the Market Opens

- theStreet 2017-10-17 06:12:00

###### U.S. stocks run out of juice as traders focus on Goldman, Morgan Stanley earnings

- MarketWatch 2017-10-17 05:14:00

###### Another Revenue Decline Expected for IBM

- Fool 2017-10-16 20:55:00

###### Jamie Dimon is betting big on the technology behind 'fraud' bitcoin

- cnbc 2017-10-16 16:29:53

###### Alibaba Vs Amazon Cloud Wars

- Seekingalpha 2017-10-16 15:10:55

###### 5 Things to Watch as IBM Reports Earnings

- theStreet 2017-10-16 15:07:00

###### Ibm Challenge Yawn

- Seekingalpha 2017-10-16 15:00:55

###### 3 Great Stocks for Your Roth IRA

- Fool 2017-10-16 11:27:00

###### These stocks have popped more than 75% since Trump was elected

- MarketWatch 2017-10-16 10:58:00

###### IBM to Speed Up Global Payments with New Blockchain Solution

- Zacks 2017-10-16 09:23:00

###### Brick-and-mortar stores deserve the heat from Amazon

- MarketWatch 2017-10-16 09:19:00

- Zacks 2017-10-16 07:55:00

###### Game Plan Week Cramers Mad Money 10 13 17

- Seekingalpha 2017-10-16 07:43:20

###### Applied Materials, DICK's Sporting Goods, Netflix, IBM and United Continental Holdings highlighted as Zacks Bull and Bear of the Day

- Zacks 2017-10-16 07:23:00

###### DST's Q3 Earnings to Gain From Financial Services & Buyouts

- Zacks 2017-10-16 07:05:00

###### Top 5 Dividend Growth Stocks Tech

- Seekingalpha 2017-10-15 21:16:17

###### Better Buffett Buy: Apple Inc. vs. IBM

- Fool 2017-10-15 14:00:00

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)