African Copper (LSE:ACU) Accounts Receivable: £3.03 Mil (As of Sep. 2014)

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What is African Copper Accounts Receivable?

African Copper LSE:ACU +10.00% Accounts Receivable is £3.03 Mil as of Sep. 2014. The stock has 4 warning signs investors should review.

Accounts Receivable are created when a customer has received a product but has not yet paid for that product. African Copper's accounts receivables for the quarter that ended in Sep. 2014 was £3.03 Mil.

Accounts receivable can be measured by Days Sales Outstanding. African Copper's Days Sales Outstanding for the quarter that ended in Sep. 2014 was 30.08.

In Ben Graham's calculation of Net-Net Working Capital, accounts receivable are only considered to be worth 75% of book value. African Copper's Net-Net Working Capital per share for the quarter that ended in Sep. 2014 was £-0.05.

African Copper 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.

African Copper's Days Sales Outstanding for the quarter that ended in Sep. 2014 is calculated as:

Days Sales Outstanding
=Accounts Receivable/Revenue*Days in Period
=3.0317984147056/18.394824311652*91
=30.08

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

African Copper's Net-Net Working Capital Per Share for the quarter that ended in Sep. 2014 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)
=(1.9122228047991+0.75 * 3.0317984147056+0.5 * 4.6177096505567-84.531351201308
-0-0)/1485.106251
=-0.05

* 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.

African Copper Accounts Receivable Related Terms

African Copper Accounts Receivable Historical Data

* Premium members only.

The historical data trend for African Copper'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.

African Copper Accounts Receivable Chart

African Copper Annual Data
Trend Dec04 Dec05 Dec06 Dec07 Dec08 Mar11 Mar12 Mar13 Mar14
Accounts Receivable
Get a 7-Day Free Trial Premium Member Only 0.00 1.05 0.88 1.72 2.68

African Copper Semi-Annual Data
Jun05 Dec05 Jun06 Jun07 Dec07 Jun08 Dec08 Jun09 Sep10 Mar11 Sep11 Mar12 Sep12 Mar13 Sep13 Mar14 Sep14
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 0.00 1.72 0.00 2.68 3.03

African Copper 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 £3.03 Mil mean?
African Copper (LSE:ACU) has a Accounts Receivable of £3.03 Mil as of Sep. 2014. Accounts receivable is the amount a company expects to receive from credit-extending customers. View historical data on African Copper and its competitors.
Is African Copper's Accounts Receivable too high?
African Copper's current Accounts Receivable is £3.03 Mil.
How does African Copper's Accounts Receivable compare to competitors?
African Copper's Accounts Receivable of £3.03 Mil can be compared against companies in the Metals & Mining 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 Metals & Mining company?
A good Accounts Receivable depends on the Metals & Mining 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 African Copper and its competitors. African Copper's current Accounts Receivable is £3.03 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is African Copper stock overvalued right now?
African Copper (LSE:ACU) has a current Accounts Receivable of £3.03 Mil. The current Accounts Receivable is £3.03 Mil. 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 African Copper (LSE:ACU), the current Accounts Receivable is £3.03 Mil as of Sep. 2014. 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.

African Copper Business Description

African Copper PLC was incorporated on February 11, 2004 in England and Wales. The Company is engaged in the exploration for, development and mining of, copper deposits in the Republic of Botswana. Its main activity is that of a holding company. Its main project is the copper producing open pit Mowana mine. The Company's wholly-owned subsidiary Messina holds the Dukwe Project comprising exploration licence PL 33/2005, with an area of 139.6 km2. The Dukwe Project with its associated licences encompasses the Mowana Mine and all current estimated mineral resources and reserves associated with the mine; together with north and south extensions of mineralization that lie outside of the Mowana Mine licence area. It also owns the rights to the adjacent Thakadu-Makala deposits and holds permits in exploration properties at the Matsitama Project which is contiguous to the southern boundary of the Mowana Mine.