Accounts Receivable are created when a customer has received a product but has not yet paid for that product. Costco Wholesale's accounts receivables for the quarter that ended in Feb. 2024 was $2,779 Mil.
Accounts receivable can be measured by Days Sales Outstanding.
Costco Wholesale's Days Sales Outstanding for the quarter that ended in Feb. 2024 was 4.34.
In Ben Graham's calculation of Net-Net Working Capital, accounts receivable are only considered to be worth 75% of book value. Costco Wholesale's Net-Net Working Capital per share for the quarter that ended in Feb. 2024 was $-55.51.
Costco Wholesale Accounts Receivable Historical Data
The historical data trend for Costco Wholesale'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.
Accounts Receivable is money owed to a business by customers and shown on its Balance Sheet as an asset.
Costco Wholesale 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.
Costco Wholesale's Days Sales Outstanding for the quarter that ended in Feb. 2024 is calculated as:
2. In Ben Graham's calculation of Net-Net Working Capital (NNWC), Costco Wholesale's accounts receivable are only considered to be worth 75% of book value:
Costco Wholesale's Net-Net Working Capital Per Share for the quarter that ended in Feb. 2024 is calculated as:
* 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.
Costco Wholesale Accounts Receivable Related Terms
Thank you for viewing the detailed overview of Costco Wholesale's Accounts Receivable provided by GuruFocus.com. Please click on the following links to see related term pages.
Costco operates a membership-based, no-frills retail model, predicated on offering a select product assortment in bulk quantities at bargain prices. The firm avoids maintaining costly product displays by keeping inventory on pallets and limits distribution expenses by storing its inventory at point of sale in the warehouse. Given Costco's frugal cost structure, the firm is able to price its merchandise below competing retailers, driving high sales volume per warehouse and allowing the retailer to generate strong profits on thin margins. Costco operates nearly 600 warehouses in the United States and boasts over 60% market share in the domestic warehouse club industry. Internationally, Costco operates another 270 warehouses, primarily in markets such as Canada, Mexico, Japan, and the U.K.
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