Dell Technologies Inc. Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Dell Technologies Inc.

DELL 120.14

-2.1%

2:58 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: MMW who wrote (99381)	2/15/1999 9:12:00 AM
From: Jurgen	Read Replies (1) of 176387

Mike, ..My understanding of receivable is that the goods have been delivered but the payment is not received... That is correct ...Does the value of the goods has been counted as revenue? Yes-if we are talking about trade receivables. But the trade receivables are not necessarily revenues of the current quarter. Roughly you could say: receivables as per end of quarter = receivables as per beginning of the quarter + sales - payments There can be a hell lot of good or not so good reasons if receivables increase more than sales. Management needs to comment, the naked number doesn't tell you nothing ...2)The day sale outstanding is also a measurement of how company doing. The receivable is part of that calculation, or not? Yes. The calculation is as follows: MSO or MonthSalesOutstanding=receivables as per end of quarter/sales for the same quarter 3 DaysSalesOutstanding (DSO)=MSO30 or, if you look at the financial year MSO = receivables as per end of the year/annual sales 12 DaysSalesOutstanding (DSO)=MSO30 again, management needs to comment if there is a change. For example, a large government deal with special payment terms can screw the numbers hope that helps Jurgen

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next