Silicon Investor (SI) -- The First Internet Community

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 : Data Race (NASDAQ: RACE) NEWS! 2 voice/data/fax: ONE LINE! -- Ignore unavailable to you. Want to Upgrade?

To: TheLineMan who wrote (25535)	11/13/1997 11:05:00 PM
From: Techteam	Read Replies (1) \| Respond to of 33268

In absolute terms receivables were down. However, that is to be expected when sales drop 70% sequentially. To measure the health of the receivables you compare the quarter end number to sales for the quarter. Normal terms for domestic accounts are 30 days, 45 are acceptable. That would suggest that if sales are even through the quarter, receivables should be at 30 days (1/3 of the quarters sales). With normal backend loading 45-50 days worth of sales in receivables is acceptable. Any number above that suggests heavy backend loading in the quarter or customers that aren't paying for their gear.