Accounts receivable appears to be more of a historic pattern than a case of stuffing, based on the last 3 years (as far as I looked).
This year, accounts receivable went up 16.6% in q3 over q2, total revenues went up by 10.5% sequentially.
Last year,accounts receivable went up 19.8% in q3 over q2, total revenues went up by 11.2% sequentially.
Two years ago, accounts receivable went up 19.1% in q3 over q2, total revenues went up by 13.2% sequentially.
In both of the previous years, the fourth quarter sequential pattern was the opposite, with account receivables not rising as fast as total receivables on a sequential basis(last year, in fact, account receivables fell in the fourth quarter).
Plus, as mentioned already, days of sales in accounts receivable is now 37 days, which compares to 40 days a year ago. Throughout the period I looked at (though I didn't look at every quarter), days of sales in accounts receivable ranged between 35 days and 40 days.
In short, I don't think the stuffing assessment is persuasive. |
