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SARO (StandardAero) Accounts Receivable : $621 Mil (As of Sep. 2024)


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What is StandardAero Accounts Receivable?

Accounts Receivable are created when a customer has received a product but has not yet paid for that product. StandardAero's accounts receivables for the quarter that ended in Sep. 2024 was $621 Mil.

Accounts receivable can be measured by Days Sales Outstanding. StandardAero's Days Sales Outstanding for the quarter that ended in Sep. 2024 was 45.55.

In Ben Graham's calculation of Net-Net Working Capital, accounts receivable are only considered to be worth 75% of book value. StandardAero's Net-Net Working Capital per share for the quarter that ended in Sep. 2024 was $-11.93.


StandardAero Accounts Receivable Historical Data

The historical data trend for StandardAero'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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StandardAero Accounts Receivable Chart

StandardAero Annual Data
Trend Dec21 Dec22 Dec23
Accounts Receivable
- 530.03 518.33

StandardAero Quarterly Data
Dec21 Dec22 Jun23 Sep23 Dec23 Jun24 Sep24
Accounts Receivable Get a 7-Day Free Trial - - 518.33 535.29 621.30

StandardAero Accounts Receivable Calculation

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


StandardAero 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.

StandardAero's Days Sales Outstanding for the quarter that ended in Sep. 2024 is calculated as:

Days Sales Outstanding
=Accounts Receivable/Revenue*Days in Period
=621.298/1244.627*91
=45.55

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

StandardAero's Net-Net Working Capital Per Share for the quarter that ended in Sep. 2024 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)
=(51.265+0.75 * 621.298+0.5 * 778.447-4895.284
-0-0)/334.462
=-11.93

* 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.


StandardAero Accounts Receivable Related Terms

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StandardAero Business Description

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Traded in Other Exchanges
N/A
Address
6710 North Scottsdale Road, Suite 250, Scottsdale, AZ, USA
StandardAero Inc is a provider of aftermarket services for fixed and rotary wing aircraft gas turbine engines and auxiliary power units (APUs) to the commercial, business, and military aircraft markets. It also provides aftermarket and upgrade services for business aviation and helicopter airframes and avionics. It operates in two segments Engine Services and Component Repair Services. The group generates the majority of its revenue from the Engine Services segment which provides engine and airframe maintenance, repair, overhaul, and related services to customers in the Commercial Aerospace, Military & Helicopter, and Business Aviation end markets.

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