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Kayne Anderson Energy Development Co  (NYSE:KED) Accounts Receivable: \$0.10 Mil (As of May. 2017)

Accounts Receivable are created when a customer has received a product but has not yet paid for that product. Kayne Anderson Energy Development Co's accounts receivables for the quarter that ended in May. 2017 was \$0.10 Mil.

Accounts receivable can be measured by Days Sales Outstanding. Kayne Anderson Energy Development Co's Days Sales Outstanding for the quarter that ended in May. 2017 was 3.02.

In Ben Graham's calculation of liquidation value, accounts receivable are only considered to be worth 75% of book value. Kayne Anderson Energy Development Co's Net-Net Working Capital for the quarter that ended in May. 2017 was \$-139.33 Mil.

Historical Data

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

Kayne Anderson Energy Development Co Annual Data

 Nov07 Nov08 Nov09 Nov10 Nov11 Nov12 Nov13 Nov14 Nov15 Nov16 Accounts Receivable 8.98 2.23 0.40 1.04 2.52

Kayne Anderson Energy Development Co Semi-Annual Data

 Nov07 May08 Nov08 May09 Nov09 May10 Nov10 May11 Nov11 May12 Nov12 May13 Nov13 May14 Nov14 May15 Nov15 May16 Nov16 May17 Accounts Receivable 0.12 1.04 2.55 2.52 0.10

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.

Kayne Anderson Energy Development Co's Days Sales Outstanding for the quarter that ended in May. 2017 is calculated as:

 Days Sales Outstanding = Accounts Receivable / Revenue * Days in Period = 0.095 / 5.746 * 91 = 3.02

2. In Ben Graham's calculation of liquidation value, Kayne Anderson Energy Development Co's accounts receivable are only considered to be worth 75% of book value:

Kayne Anderson Energy Development Co's liquidation value for the quarter that ended in May. 2017 is calculated as:

 Liquidation value = Cash And Cash Equivalents - Total Liabilities + (0.75 * Accounts Receivable) + (0.5 * Total Inventories) = 0.505 - 139.905 + 0.75 * 0.095 + 0.5 * 0 = -139.33

* 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