Accounts Receivable are created when a customer has received a product but has not yet paid for that product. NL Industries's accounts receivables for the quarter that ended in Dec. 2023 was $16.6 Mil.
Accounts receivable can be measured by Days Sales Outstanding.
NL Industries's Days Sales Outstanding for the quarter that ended in Dec. 2023 was 35.16.
In Ben Graham's calculation of Net-Net Working Capital, accounts receivable are only considered to be worth 75% of book value. NL Industries's Net-Net Working Capital per share for the quarter that ended in Dec. 2023 was $-0.29.
NL Industries Accounts Receivable Historical Data
The historical data trend for NL Industries'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.
NL Industries 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.
NL Industries'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), NL Industries's accounts receivable are only considered to be worth 75% of book value:
NL Industries'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.
NL Industries Accounts Receivable Related Terms
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NL Industries (NL Industries) Business Description
NL Industries Inc operates in the component products industry through its majority-owned subsidiary, CompX International Inc. It manufactures engineered components that are sold to a range of industries, including recreational transportation, postal, office and institutional furniture, cabinetry, tool storage, healthcare, gas stations and vending equipment. CompX has three production facilities in the United States, through which it produces a precision ball bearing slide, security products, and ergonomic computer support systems. The company derives most of its revenue from Europe.
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