Preferred Commerce (Preferred Commerce) Accounts Receivable : $0.04 Mil (As of Nov. 2015)

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What is Preferred Commerce Accounts Receivable?

Accounts Receivable are created when a customer has received a product but has not yet paid for that product. Preferred Commerce's accounts receivables for the quarter that ended in Nov. 2015 was $0.04 Mil.

Accounts receivable can be measured by Days Sales Outstanding. Preferred Commerce's Days Sales Outstanding for the quarter that ended in Nov. 2015 was 31.77.

In Ben Graham's calculation of Net-Net Working Capital, accounts receivable are only considered to be worth 75% of book value. Preferred Commerce's Net-Net Working Capital per share for the quarter that ended in Nov. 2015 was $-0.17.

Preferred Commerce Accounts Receivable Historical Data

The historical data trend for Preferred Commerce'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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Preferred Commerce Accounts Receivable Chart

Preferred Commerce Annual Data

Trend

Nov07

Nov08

Nov09

Nov10

Nov14

Nov15

Accounts Receivable

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0.04

Preferred Commerce Semi-Annual Data
	Nov07	Nov08	Nov09	Nov10	Nov14	Nov15
Accounts Receivable	Get a 7-Day Free Trial			-	-	-	-	0.04

Preferred Commerce Accounts Receivable Calculation

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

Preferred Commerce 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.

Preferred Commerce's Days Sales Outstanding for the quarter that ended in Nov. 2015 is calculated as:

	Days Sales Outstanding
=	Accounts Receivable	/	Revenue	*	Days in Period
=	0.043	/	0.247	*	91
=	31.77

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

Preferred Commerce's Net-Net Working Capital Per Share for the quarter that ended in Nov. 2015 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)
=	(0.035	+	0.75 * 0.043	+	0.5 * 0.391	-	9.827
-	0	-	0)	/	55.4938
=	-0.17

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.

Preferred Commerce Accounts Receivable Related Terms

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Preferred Commerce (Preferred Commerce) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Preferred Commerce Inc (OTCPK:CELV) » Definitions » Accounts Receivable

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Traded in Other Exchanges

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Address

3260 Fairline Farms Road, Unit No. 1, Wellington, FL, USA, 33414

Website

http://www.preferredcommerce.com

Preferred Commerce Inc is focused on health and wellness products with main product being Thriv5. Thriv5 products contain Superoxide Dismutase (SOD) combined with antioxidants, soluble corn fiber and other ingredients that help the human body regenerate healthy cells and strengthen the immune system. The company is promoting the product through retail stores, online sales, and social media.