Sir pinkness,
Here's the past 4 qtrs of accounts receivable information on Cellstar and the 9/97 accounts receivable for Brightpoint(CELL).
11/96 2/97 5/97 8/97 CELL 9/97
Revenues $293,465 $256,645 $377,562 $442,106 $243,210
Gross A/R 160,835 141,077 170,561 195,980 132,996
Gross DSO 50 50 41 40 50
Reserve 29,023 30,595 33,632 27,036 1,882
Net A/R 131,812 110,482 136,929 168,944 131,114
Net DSO 41 39 33 35 49
Where do you see the problem with CLST receivables? Especially when compared to their main competitor? CLST has 5 times the number of days sales outstanding reserved as Brightpoint and 14 days less in net receivables. The only potential redflag on CLST is the decline in the reserve from 5/97 to 8/97 which could have potentially been a reversal which overstated income. As I previously stated, I have reserached this issue and that is not the case, they wrote off previously 100% reserved receivables against the reserve causing the decrease in the total reserve but having no impact on the P&L. Your statement that receivables are rising is not accurate when compared to the rise in sales. CLST is collecting their receivables 10 days quicker vs a year ago which in my book is a positive.
JWT
Yatzee
Stinking spacing format I put between the numbers didn't work on the post, sorry it's difficult to read. |
