Farfetch (Farfetch) Accounts Receivable : $501 Mil (As of Jun. 2023)

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What is Farfetch Accounts Receivable?

Accounts Receivable are created when a customer has received a product but has not yet paid for that product. Farfetch's accounts receivables for the quarter that ended in Jun. 2023 was $501 Mil.

Accounts receivable can be measured by Days Sales Outstanding. Farfetch's Days Sales Outstanding for the quarter that ended in Jun. 2023 was 79.95.

In Ben Graham's calculation of Net-Net Working Capital, accounts receivable are only considered to be worth 75% of book value. Farfetch's Net-Net Working Capital per share for the quarter that ended in Jun. 2023 was $-5.03.

Farfetch Accounts Receivable Historical Data

The historical data trend for Farfetch'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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Farfetch Accounts Receivable Chart

Farfetch Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Accounts Receivable

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2.73

41.48

49.83

63.05

89.94

Farfetch Quarterly Data
	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23
Accounts Receivable	Get a 7-Day Free Trial															454.69	460.25	89.94	515.65	501.23

Farfetch Accounts Receivable Calculation

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

Farfetch 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.

Farfetch's Days Sales Outstanding for the quarter that ended in Jun. 2023 is calculated as:

	Days Sales Outstanding
=	Accounts Receivable	/	Revenue	*	Days in Period
=	501.225	/	572.086	*	91
=	79.95

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

Farfetch's Net-Net Working Capital Per Share for the quarter that ended in Jun. 2023 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)
=	(453.82	+	0.75 * 501.225	+	0.5 * 436.408	-	2891.783
-	0	-	145.603)	/	395.466
=	-5.03

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.

Farfetch Accounts Receivable Related Terms

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Farfetch (Farfetch) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Farfetch Ltd (OTCPK:FTCHF) » Definitions » Accounts Receivable

Comparable Companies

Traded in Other Exchanges

FTCH:Mexico F1F:Germany

Address

The Bower, 211 Old Street, London, GBR, EC1V 9NR

Website

https://www.farfetchinvestors.com

Farfetch is an online platform connecting sellers and buyers of personal luxury goods. It was founded in 2008. The company partners with over 1,000 luxury goods sellers to offer their inventory on the platform. When making the retailers' stock available to almost a million active customers, the company charges a cut of over 30% (third-party take rate). The company operates digital marketplace platform Farfetch, Browns stores, acquired branded company New Guard Group and Farfetch solutions, powering e-commerce operations of luxury brands.