Ashtead Group (LSE:AHT) Accounts Receivable

: £1,580 Mil (As of Jan. 2024)

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Accounts Receivable are created when a customer has received a product but has not yet paid for that product. Ashtead Group's accounts receivables for the quarter that ended in Jan. 2024 was £1,580 Mil.

Accounts receivable can be measured by Days Sales Outstanding. Ashtead Group's Days Sales Outstanding for the quarter that ended in Jan. 2024 was 68.91.

In Ben Graham's calculation of Net-Net Working Capital, accounts receivable are only considered to be worth 75% of book value. Ashtead Group's Net-Net Working Capital per share for the quarter that ended in Jan. 2024 was £-23.91.

Ashtead Group Accounts Receivable Historical Data

The historical data trend for Ashtead Group'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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Ashtead Group Annual Data

Trend

Apr14

Apr15

Apr16

Apr17

Apr18

Apr19

Apr20

Apr21

Apr22

Apr23

Accounts Receivable

697.36

834.06

670.09

907.50

1,111.99

Ashtead Group Quarterly Data
	Apr19	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24
Accounts Receivable																1,429.34	1,111.99	1,478.05	1,648.08	1,579.67

Ashtead Group Accounts Receivable Calculation

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

Ashtead Group 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.

Ashtead Group's Days Sales Outstanding for the quarter that ended in Jan. 2024 is calculated as:

	Days Sales Outstanding
=	Accounts Receivable	/	Revenue	*	Days in Period
=	1579.666	/	2091.689	*	91
=	68.91

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

Ashtead Group's Net-Net Working Capital Per Share for the quarter that ended in Jan. 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)
=	(17.629	+	0.75 * 1579.666	+	0.5 * 151.497	-	11716.856
-	0	-	0)	/	436.653
=	-23.91

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.

Ashtead Group Accounts Receivable Related Terms

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Ashtead Group (LSE:AHT) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » Ashtead Group PLC (LSE:AHT) » Definitions » Accounts Receivable

Comparable Companies

Traded in Other Exchanges

ASHTY:USA ASHTF:USA AHTl:UK 0LC:Germany

Address

100 Cheapside, London, GBR, EC2V 6DT

Website

https://www.ashtead-group.com

Ashtead is an equipment rental business with operations in the U.S., Canada, and United Kingdom, operating under the Sunbelt Rentals brand. Earnings are mostly derived from the U.S. where Sunbelt enjoy a number-two market position with a 13% share in a highly fragmented market consisting of national, regional, and independent competitors. Ashtead rents a range of construction, industrial, and general equipment such as aerial lifts, hand-held tools, and forklifts across its more than 1,550 rental stores worldwide.