FTCHQ (Farfetch) Accounts Receivable: $501 Mil (As of Jun. 2023)

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FTCHQ Farfetch Ltd FTCHQ
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What is Farfetch Accounts Receivable?

Farfetch FTCHQ -99.00% 12 Accounts Receivable is $501 Mil as of Jun. 2023. GuruFocus rates FTCHQ with a GF Score™ of 12/100.

Accounts Receivable are created when a customer has received a product but has not yet paid for that product. Farfetch's accounts receivables for the quarter that ended in Jun. 2023 was $501 Mil.

Accounts receivable can be measured by Days Sales Outstanding. Farfetch's Days Sales Outstanding for the quarter that ended in Jun. 2023 was 79.95.

In Ben Graham's calculation of Net-Net Working Capital, accounts receivable are only considered to be worth 75% of book value. Farfetch's Net-Net Working Capital per share for the quarter that ended in Jun. 2023 was $-5.03.

Farfetch 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.

Farfetch's Days Sales Outstanding for the quarter that ended in Jun. 2023 is calculated as:

Days Sales Outstanding
=Accounts Receivable/Revenue*Days in Period
=501.225/572.086*91
=79.95

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

Farfetch's Net-Net Working Capital Per Share for the quarter that ended in Jun. 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)
=(453.82+0.75 * 501.225+0.5 * 436.408-2891.783
-0-145.603)/395.466
=-5.03

* 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.

Farfetch Accounts Receivable Related Terms

Farfetch Accounts Receivable Historical Data

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The historical data trend for Farfetch'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.

Farfetch Accounts Receivable Chart

Farfetch Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22
Accounts Receivable
Get a 7-Day Free Trial 2.73 41.48 49.83 63.05 89.94

Farfetch Quarterly Data
Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23
Accounts Receivable Get a 7-Day Free Trial 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 454.69 460.25 89.94 515.65 501.23
FTCHQ
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Farfetch Ltd FTCHQ
Accounts Receivable is just one metric. See GF Score™, valuation, warning signs, and more.
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Farfetch Accounts Receivable Calculation

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

Frequently Asked Questions Learn more about Accounts Receivable →
What does a Accounts Receivable of $501 Mil mean?
Farfetch (FTCHQ) has a Accounts Receivable of $501 Mil as of Jun. 2023. Accounts receivable is the amount a company expects to receive from credit-extending customers. View historical data on Farfetch and its competitors.
Is Farfetch's Accounts Receivable too high?
Farfetch's current Accounts Receivable is $501 Mil. Overall, Farfetch has a GF Score™ of 12/100, reflecting its overall financial health beyond just this single metric.
How does Farfetch's Accounts Receivable compare to LQDT and FINR?
Farfetch's Accounts Receivable of $501 Mil can be compared against companies in the Retail - Cyclical industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Accounts Receivable for a Retail - Cyclical company?
A good Accounts Receivable depends on the Retail - Cyclical industry context. However, Accounts Receivable should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Accounts Receivable mean?
A high Accounts Receivable can signal that a stock is expensive relative to its fundamentals. Accounts receivable is the amount a company expects to receive from credit-extending customers. View historical data on Farfetch and its competitors. Farfetch's current Accounts Receivable is $501 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Farfetch stock overvalued right now?
Farfetch (FTCHQ) has a current Accounts Receivable of $501 Mil. The current Accounts Receivable is $501 Mil. Farfetch's overall GF Score™ is 12/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Accounts Receivable calculated?
Accounts Receivable is calculated from a company's financial statements. For Farfetch (FTCHQ), the current Accounts Receivable is $501 Mil as of Jun. 2023. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Farfetch Business Description

Address The Bower, 211 Old Street, London, GBR, EC1V 9NR
Farfetch Ltd is an online platform connecting sellers and buyers of personal luxury goods. It was founded in 2008. The company partners with over 1,000 luxury goods sellers to offer their inventory on the platform. When making the retailers' stock available to almost a million active customers, the company charges a cut of over 30% (third-party take rate). The company operates digital marketplace platform Farfetch, Browns stores, acquired branded company New Guard Group and Farfetch solutions, powering e-commerce operations of luxury brands.
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Accounts Receivable is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

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