Zhejiang He Chuan Technology (SHSE:688320) Accounts Receivable

: ¥524 Mil (As of Sep. 2023)

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Accounts Receivable are created when a customer has received a product but has not yet paid for that product. Zhejiang He Chuan Technology's accounts receivables for the quarter that ended in Sep. 2023 was ¥524 Mil.

Accounts receivable can be measured by Days Sales Outstanding. Zhejiang He Chuan Technology's Days Sales Outstanding for the quarter that ended in Sep. 2023 was 168.77.

In Ben Graham's calculation of Net-Net Working Capital, accounts receivable are only considered to be worth 75% of book value. Zhejiang He Chuan Technology's Net-Net Working Capital per share for the quarter that ended in Sep. 2023 was ¥1.57.

Zhejiang He Chuan Technology Accounts Receivable Historical Data

The historical data trend for Zhejiang He Chuan Technology'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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Zhejiang He Chuan Technology Annual Data

Trend

Dec18

Dec19

Dec20

Dec21

Dec22

Accounts Receivable

91.26

140.80

159.71

249.32

393.36

Zhejiang He Chuan Technology Quarterly Data
	Dec18	Dec19	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23
Accounts Receivable											392.58	393.36	487.91	517.26	524.07

Zhejiang He Chuan Technology Accounts Receivable Calculation

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

Zhejiang He Chuan Technology 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.

Zhejiang He Chuan Technology's Days Sales Outstanding for the quarter that ended in Sep. 2023 is calculated as:

	Days Sales Outstanding
=	Accounts Receivable	/	Revenue	*	Days in Period
=	524.065	/	283.351	*	91
=	168.77

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

Zhejiang He Chuan Technology's Net-Net Working Capital Per Share for the quarter that ended in Sep. 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)
=	(268.647	+	0.75 * 524.065	+	0.5 * 470.049	-	660.794
-	0	-	-1.723)	/	151.014
=	1.57

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.

Zhejiang He Chuan Technology Accounts Receivable Related Terms

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Zhejiang He Chuan Technology (SHSE:688320) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Hardware » Zhejiang He Chuan Technology Corp Ltd (SHSE:688320) » Definitions » Accounts Receivable

Comparable Companies

Traded in Other Exchanges

N/A

Address

No. 9, Fucai Road, Longyou Industrial Park, Zhejiang Province, Quzhou, CHN, 324400

Website

https://www.hcfa.cn

Zhejiang He Chuan Technology Corp Ltd is engaged in the research and development, production, sales and application integration of industrial automation products.

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