Toromont Industries (Toromont Industries) Accounts Receivable

: $439 Mil (As of Dec. 2023)

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Accounts Receivable are created when a customer has received a product but has not yet paid for that product. Toromont Industries's accounts receivables for the quarter that ended in Dec. 2023 was $439 Mil.

Accounts receivable can be measured by Days Sales Outstanding. Toromont Industries's Days Sales Outstanding for the quarter that ended in Dec. 2023 was 43.80.

In Ben Graham's calculation of Net-Net Working Capital, accounts receivable are only considered to be worth 75% of book value. Toromont Industries's Net-Net Working Capital per share for the quarter that ended in Dec. 2023 was $1.39.

Toromont Industries Accounts Receivable Historical Data

The historical data trend for Toromont 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.

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Toromont Industries Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Accounts Receivable

358.22

362.85

303.83

390.68

438.95

Toromont Industries Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Accounts Receivable																390.68	401.27	437.54	471.24	438.95

Toromont Industries Accounts Receivable Calculation

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

Toromont 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.

Toromont Industries's Days Sales Outstanding for the quarter that ended in Dec. 2023 is calculated as:

	Days Sales Outstanding
=	Accounts Receivable	/	Revenue	*	Days in Period
=	438.949	/	914.533	*	91
=	43.80

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

Toromont Industries's Net-Net Working Capital Per Share for the quarter that ended in Dec. 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)
=	(775.758	+	0.75 * 438.949	+	0.5 * 834.132	-	1407.271
-	0	-	0)	/	82.2973
=	1.39

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.

Toromont Industries Accounts Receivable Related Terms

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Toromont Industries (Toromont Industries) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Distribution » Toromont Industries Ltd (OTCPK:TMTNF) » Definitions » Accounts Receivable

Comparable Companies

Traded in Other Exchanges

14T:Germany TIH:Canada

Address

3131 Highway 7 West, P.O. Box 5511, Concord, ON, CAN, L4K 1B7

Website

https://www.toromont.com

Toromont Industries Ltd is a Canadian industrial company. The company operates two business segments: Equipment Group and CIMCO. The larger segment by revenue, Equipment Group includes a Caterpillar dealership and rental operation of construction equipment. CIMCO offers solutions for the design, engineering, fabrication, and installation of industrial and recreational refrigeration systems. The company operates majorly in Canada and derives a smaller portion of sales from the United States of America.