Allocate Software (LSE:ALLA) Receivables Turnover: 2.23 (As of May. 2014)

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What is Allocate Software Receivables Turnover?

Allocate Software LSE:ALLA Receivables Turnover is 2.23 as of May. 2014. The stock has 1 warning sign 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. Allocate Software's Revenue for the six months ended in May. 2014 was £22.75 Mil. Allocate Software's average Accounts Receivable for the six months ended in May. 2014 was £10.22 Mil. Hence, Allocate Software's Receivables Turnover for the six months ended in May. 2014 was 2.23.


Allocate Software  (LSE:ALLA) 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.


Allocate Software Receivables Turnover Related Terms


Allocate Software Receivables Turnover Historical Data

* Premium members only.

The historical data trend for Allocate Software'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.

Allocate Software Receivables Turnover Chart

Allocate Software Annual Data
Trend May05 May06 May07 May08 May09 May10 May11 May12 May13 May14
Receivables Turnover
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.56 3.89 3.65 3.44 4.19

Allocate Software Semi-Annual Data
Nov04 May05 Nov05 May06 Nov06 May07 Nov07 May08 Nov08 May09 Nov09 May10 Nov10 May11 Nov11 May12 Nov12 May13 Nov13 May14
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 1.79 1.29 1.89 1.71 2.23

LSE:ALLA vs SREV, ASUR: Receivables Turnover Comparison

For the Software - Application subindustry, Allocate Software'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.


Allocate Software Receivables Turnover vs Software Industry

For the Software industry and Technology sector, Allocate Software's Receivables Turnover distribution charts can be found below:

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



Allocate Software Receivables Turnover Calculation

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

Allocate Software's Receivables Turnover for the fiscal year that ended in May. 2014 is calculated as

Receivables Turnover (A: May. 2014 )
=Revenue / Average Accounts Receivable
=Revenue (A: May. 2014 ) / ((Accounts Receivable (A: May. 2013 ) + Accounts Receivable (A: May. 2014 )) / count )
=40.022 / ((9.425 + 9.701) / 2 )
=40.022 / 9.563
=4.19

Allocate Software's Receivables Turnover for the quarter that ended in May. 2014 is calculated as

Receivables Turnover (Q: May. 2014 )
=Revenue / Average Accounts Receivable
=Revenue (Q: May. 2014 ) / ((Accounts Receivable (Q: Nov. 2013 ) + Accounts Receivable (Q: May. 2014 )) / count )
=22.746 / ((10.739 + 9.701) / 2 )
=22.746 / 10.22
=2.23

* 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 2.23 mean?
Allocate Software (LSE:ALLA) has a Receivables Turnover of 2.23 as of May. 2014. 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 Allocate Software and its competitors.
Is Allocate Software's Receivables Turnover too high?
Allocate Software's current Receivables Turnover is 2.23. The Software industry median Receivables Turnover is 5.77. Allocate Software's value of 2.23 is 61.4% below this industry median.
How does Allocate Software's Receivables Turnover compare to SREV and ASUR?
Allocate Software's Receivables Turnover of 2.23 can be compared against companies in the Software industry. The industry median Receivables Turnover is 5.77. Allocate Software's value of 2.23 is 61.4% 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 Software company?
The median Receivables Turnover among Software companies is 5.77, based on 2,783 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. Allocate Software's current Receivables Turnover of 2.23 is 61.4% 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 Allocate Software and its competitors. For the Software industry, the median Receivables Turnover is 5.77 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Allocate Software's current Receivables Turnover is 2.23. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Allocate Software stock overvalued right now?
Allocate Software (LSE:ALLA) has a current Receivables Turnover of 2.23. The current Receivables Turnover is 2.23 and 61.4% below the Software industry median of 5.77. 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 Allocate Software (LSE:ALLA), the current Receivables Turnover is 2.23 as of May. 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.

Allocate Software Business Description

Allocate Software PLC is engaged in the development, sale and support of workforce management solutions, and the provision of related IT services to major healthcare, defence, government and commercial customers. The business of the company is focused principally on the Healthcare market in addition to Defence. Its segments are Licence, Subscriptions, Support, and Services. Licence and Subscriptions segments represent the sale of non-cancellable software licence agreements and subscriptions associated with that software. Support and Services segments represent the provision of installation, consulting, training and product support. It operates in UK, Europe, USA and Australia.