Life (ASX:LFC) Receivables Turnover: 8.81 (As of Jun. 2017)


What is Life Receivables Turnover?

Life ASX:LFC Receivables Turnover is 8.81 as of Jun. 2017. The stock has 5 warning signs investors should review.

The Receivables Turnover ratio measures the number of times a company collects its average accounts receivable balance. It is calculated as Revenue divided by average Accounts Receivable. An efficient company has a higher accounts receivable turnover ratio while an inefficient company has a lower ratio. Life's Revenue for the six months ended in Jun. 2017 was A$1.77 Mil. Life's average Accounts Receivable for the six months ended in Jun. 2017 was A$0.30 Mil. Hence, Life's Receivables Turnover for the six months ended in Jun. 2017 was 5.85.

Life  (ASX:LFC) Receivables Turnover Explanation

An efficient company has a higher accounts receivable turnover ratio while an inefficient company has a lower ratio. This metric is commonly used to compare companies within the same industry to check whether they are on par with their competitors.

Life Receivables Turnover Related Terms

Life Receivables Turnover Historical Data

* Premium members only.

The historical data trend for Life's Receivables Turnover 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.

Life Receivables Turnover Chart

Life Annual Data
Trend Jun07 Jun08 Jun09 Jun10 Jun11 Jun12 Jun13 Jun14 Jun16 Jun17
Receivables Turnover
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.57 5.69 45.88 32.02 21.30

Life Semi-Annual Data
Dec07 Jun08 Dec08 Jun09 Dec09 Jun10 Dec10 Jun11 Dec11 Jun12 Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17
Receivables Turnover 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 0.00 2.36 11.26 4.27 8.81

Life Receivables Turnover Competitor Comparison

For the Personal Services subindustry, Life's Receivables Turnover, along with its competitors' market caps and Receivables Turnover data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Life Receivables Turnover vs Personal Services Industry

For the Personal Services industry and Consumer Cyclical sector, Life's Receivables Turnover distribution charts can be found below:

* The bar in red indicates where Life's Receivables Turnover falls into.


Life Receivables Turnover Calculation

Receivables Turnover measures the number of times a company collects its average accounts receivable balance.

Life's Receivables Turnover for the fiscal year that ended in Jun. 2017 is calculated as

Receivables Turnover (A: Jun. 2017 )
=Revenue / Average Accounts Receivable
=Revenue (A: Jun. 2017 ) / ((Accounts Receivable (A: Jun. 2016 ) + Accounts Receivable (A: Jun. 2017 )) / count )
=3.494 / ((0.127 + 0.201) / 2 )
=3.494 / 0.164
=21.30

Life's Receivables Turnover for the quarter that ended in Jun. 2017 is calculated as

Receivables Turnover (Q: Jun. 2017 )
=Revenue / Average Accounts Receivable
=Revenue (Q: Jun. 2017 ) / ((Accounts Receivable (Q: Dec. 2016 ) + Accounts Receivable (Q: Jun. 2017 )) / count )
=1.77 / ((0.404 + 0.201) / 2 )
=1.77 / 0.3025
=5.85

* 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.

Frequently Asked Questions Learn more about Receivables Turnover →
What does a Receivables Turnover of 8.81 mean?
Life (ASX:LFC) has a Receivables Turnover of 8.81 as of Jun. 2017. The accounts receivables turnover ratio measures the number of times a company collects its average accounts receivable balance. It is calculated as Revenue divided by Average Accounts Receivable. View historical data on Life and its competitors.
Is Life's Receivables Turnover too high?
Life's current Receivables Turnover is 8.81. The Personal Services industry median Receivables Turnover is 13.29. Life's value of 8.81 is 33.7% below this industry median.
How does Life's Receivables Turnover compare to competitors?
Life's Receivables Turnover of 8.81 can be compared against companies in the Personal Services industry. The industry median Receivables Turnover is 13.29. Life's value of 8.81 is 33.7% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Receivables Turnover for a Personal Services company?
The median Receivables Turnover among Personal Services companies is 13.29, based on 91 companies in the industry. Companies in the top quartile (top 25%) have a Receivables Turnover significantly above this median, while those in the bottom quartile fall well below. However, Receivables Turnover should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Life's current Receivables Turnover of 8.81 is 33.7% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Receivables Turnover mean?
A high Receivables Turnover can signal that a stock is expensive relative to its fundamentals. The accounts receivables turnover ratio measures the number of times a company collects its average accounts receivable balance. It is calculated as Revenue divided by Average Accounts Receivable. View historical data on Life and its competitors. For the Personal Services industry, the median Receivables Turnover is 13.29 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Life's current Receivables Turnover is 8.81. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Life stock overvalued right now?
Life (ASX:LFC) has a current Receivables Turnover of 8.81. The current Receivables Turnover is 8.81 and 33.7% below the Personal Services industry median of 13.29. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Receivables Turnover calculated?
Receivables Turnover is calculated from a company's financial statements. For Life (ASX:LFC), the current Receivables Turnover is 8.81 as of Jun. 2017. 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.

Life Business Description

Address 988 Toa Payoh North, No. 07-05, Singapore, SGP, 319002
Life Corp Ltd is a holding company. The company through its subsidiaries is engaged in providing multi-religion funeral services relating to burials or cremations and including other related ancillary services and supplies. The company provides one-stop funeral, bereavement and afterlife care services in Singapore.