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Shopify (NYSE:SHOP) Accounts Receivable

: $516 Mil (As of Sep. 2022)
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Accounts Receivable are created when a customer has received a product but has not yet paid for that product. Shopify's accounts receivables for the quarter that ended in Sep. 2022 was $516 Mil.

Accounts receivable can be measured by Days Sales Outstanding. Shopify's Days Sales Outstanding for the quarter that ended in Sep. 2022 was 34.49.

In Ben Graham's calculation of Net-Net Working Capital, accounts receivable are only considered to be worth 75% of book value. Shopify's Net-Net Working Capital per share for the quarter that ended in Sep. 2022 was $2.22.


Shopify Accounts Receivable Historical Data

The historical data trend for Shopify'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.

* Premium members only.

Shopify Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Accounts Receivable
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 54.17 87.08 130.47 216.47 441.37

Shopify Quarterly Data
Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22
Accounts Receivable Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 510.19 441.37 425.70 446.72 516.41

Shopify Accounts Receivable Calculation

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


Shopify 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.

Shopify's Days Sales Outstanding for the quarter that ended in Sep. 2022 is calculated as:

Days Sales Outstanding
=Accounts Receivable/Revenue*Days in Period
=516.408/1366.2*91
=34.49

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

Shopify's Net-Net Working Capital Per Share for the quarter that ended in Sep. 2022 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)
=(4941.432+0.75 * 516.408+0.5 * 0-2510.277
-0-0)/1272.02
=2.22

* 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.


Shopify Accounts Receivable Related Terms

Thank you for viewing the detailed overview of Shopify's Accounts Receivable provided by GuruFocus.com. Please click on the following links to see related term pages.


Shopify (NYSE:SHOP) Business Description

Shopify logo
Traded in Other Exchanges
Address
151 O'Connor Street, Ground Floor, Ottawa, ON, CAN, K2P2L8
Shopify offers an e-commerce platform primarily to small and midsize businesses. The firm has two segments: subscription solutions (43% of fiscal 2018 revenue) and merchant solutions (57% of fiscal 2018 revenue). The subscription solutions segment allows Shopify merchants to conduct e-commerce on a variety of platforms, including the company's website, physical stores, pop-up stores, kiosks, social networks (Facebook), and Amazon. Merchant solutions are add-on products for the platform that facilitate e-commerce and include Shopify Payments, Shopify Shipping, and Shopify Capital.

Shopify (NYSE:SHOP) Headlines

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