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Associated British Foods (LSE:ABF) Accounts Receivable : £1,677 Mil (As of Feb. 2024)


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What is Associated British Foods Accounts Receivable?

Accounts Receivable are created when a customer has received a product but has not yet paid for that product. Associated British Foods's accounts receivables for the quarter that ended in Feb. 2024 was £1,677 Mil.

Accounts receivable can be measured by Days Sales Outstanding. Associated British Foods's Days Sales Outstanding for the quarter that ended in Feb. 2024 was 31.44.

In Ben Graham's calculation of Net-Net Working Capital, accounts receivable are only considered to be worth 75% of book value. Associated British Foods's Net-Net Working Capital per share for the quarter that ended in Feb. 2024 was £-4.65.


Associated British Foods Accounts Receivable Historical Data

The historical data trend for Associated British Foods'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.

* Premium members only.

Associated British Foods Accounts Receivable Chart

Associated British Foods Annual Data
Trend Aug14 Aug15 Aug16 Aug17 Aug18 Aug19 Aug20 Aug21 Aug22 Aug23
Accounts Receivable
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1,080.00 1,022.00 1,021.00 1,311.00 1,319.00

Associated British Foods Semi-Annual Data
Aug14 Feb15 Aug15 Feb16 Aug16 Feb17 Aug17 Feb18 Aug18 Feb19 Aug19 Feb20 Aug20 Feb21 Aug21 Feb22 Aug22 Feb23 Aug23 Feb24
Accounts Receivable Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1,507.00 1,311.00 1,824.00 1,319.00 1,677.00

Associated British Foods Accounts Receivable Calculation

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


Associated British Foods 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.

Associated British Foods's Days Sales Outstanding for the quarter that ended in Feb. 2024 is calculated as:

Days Sales Outstanding
=Accounts Receivable/Revenue*Days in Period
=1677/9734*91
=31.44

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

Associated British Foods's Net-Net Working Capital Per Share for the quarter that ended in Feb. 2024 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)
=(1268+0.75 * 1677+0.5 * 3248-7576
-0-87)/755.422
=-4.65

* 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.


Associated British Foods Accounts Receivable Related Terms

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Associated British Foods (LSE:ABF) Business Description

Traded in Other Exchanges
Address
10 Grosvenor Street, Weston Centre, London, GBR, W1K 4QY
Associated British Foods is a diversified international retail, food, and ingredients group with 130,000 employees and operations in 50 countries across Europe, southern Africa, the Americas, Asia, and Australia. The group sells branded grocery products, grows and processes sugar, supplies farmers with crop input and animal feed, and runs the popular Primark clothing retail chain. It also supplies ingredients like baker's yeast, enzymes, lipids, and cereal specialities. Some 40% of sales are in the U.K., and Primark generates more than half of the firm's operating profit.

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