Accounts Receivable are created when a customer has received a product but has not yet paid for that product. Rave Restaurant Group's accounts receivables for the quarter that ended in Dec. 2023 was $1.19 Mil.
Accounts receivable can be measured by Days Sales Outstanding.
Rave Restaurant Group's Days Sales Outstanding for the quarter that ended in Dec. 2023 was 38.99.
In Ben Graham's calculation of Net-Net Working Capital, accounts receivable are only considered to be worth 75% of book value. Rave Restaurant Group's Net-Net Working Capital per share for the quarter that ended in Dec. 2023 was $0.22.
Rave Restaurant Group Accounts Receivable Historical Data
The historical data trend for Rave Restaurant 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.
Rave Restaurant Group Accounts Receivable Calculation
Accounts Receivable is money owed to a business by customers and shown on its Balance Sheet as an asset.
Rave Restaurant 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.
Rave Restaurant Group's Days Sales Outstanding for the quarter that ended in Dec. 2023 is calculated as:
2. In Ben Graham's calculation of Net-Net Working Capital (NNWC), Rave Restaurant Group's accounts receivable are only considered to be worth 75% of book value:
Rave Restaurant Group's Net-Net Working Capital Per Share for the quarter that ended in Dec. 2023 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.
Rave Restaurant Group Accounts Receivable Related Terms
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Rave Restaurant Group (Rave Restaurant Group) Business Description
Rave Restaurant Group Inc operates and franchises pizza buffet, delivery/carry-out, and express restaurants. It operates restaurants under the brand name, Pizza Inn, and Pie Five Pizza Company. It has three operating segments. The Pizza Inn and Pie Five Franchising segments establish franchisees, licensees, and territorial rights. The company-owned restaurant segment includes sales and operating results for all company-owned restaurants. The Pizza Inn Franchising segment accounts for the company's revenue. Geographically, it generates the majority of the revenue from the United States.
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