Jones,
Here is the calculation that I used for CSCC's December 96 DSO:
Receivables at December 31, 1996 $81,949,000 (see Table 5)
Divided by 12 month trailing sales as follows:
Sales per share $4.07 (see Table 1)
Times : Shares out 83,682,000 (see Table 11)
Equales: 12 month trailing sales $340,585,000
Times 365 days
CSCC Dec 96 DSO = (Receivables / annual sales) * 365
= ($81,949,000/$340,585,000)*365
= 88
Now, you may have a different basis for calculating these numbers or different numbers (for example shares outstanding vary a lot from one source to the next) but that doesn't invalidate the point of my argument. Remember, this is a comparative analysis and provided that all my numbers are calculated on a consistent basis, the comparisons and conclusions hold. That is all I care about in making those posts.
Regards,
David |
