Accounts Receivable are created when a customer has received a product but has not yet paid for that product. ArthroCare's accounts receivables for the quarter that ended in Mar. 2014 was €36.9 Mil.
Accounts receivable can be measured by Days Sales Outstanding.
ArthroCare's Days Sales Outstanding for the quarter that ended in Mar. 2014 was 48.46.
In Ben Graham's calculation of Net-Net Working Capital, accounts receivable are only considered to be worth 75% of book value. ArthroCare's Net-Net Working Capital per share for the quarter that ended in Mar. 2014 was €3.78.
ArthroCare Accounts Receivable Historical Data
The historical data trend for ArthroCare's Accounts Receivable can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Accounts Receivable is money owed to a business by customers and shown on its Balance Sheet as an asset.
ArthroCare Accounts Receivable Explanation
1. Accounts Receivable are created when a customer has received a product but has not yet paid for that product. Days Sales Outstanding measures of the average number of days that a company takes to collect revenue after a sale has been made. It is a financial ratio that illustrates how well a company's accounts receivables are being managed.
ArthroCare's Days Sales Outstanding for the quarter that ended in Mar. 2014 is calculated as:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Be Aware
Net receivables tells us a great deal about the different competitors in the same industry. In competitive industries, some attempt to gain advantage by offering better credit terms, causing increase in sales and receivables.
If company consistently shows lower % Net receivables to gross sales than competitors, then it usually has some kind of competitive advantage which requires further digging.
Average Days Sales Outstanding is a good indicator for measuring a company's sales channel and customers. A company may book great revenue and earnings growth but never receive payment from their customers. This may force a write-off in the future and depress future earnings.
ArthroCare Accounts Receivable Related Terms
Thank you for viewing the detailed overview of ArthroCare's Accounts Receivable provided by GuruFocus.com. Please click on the following links to see related term pages.
ArthroCare was incorporated in California in 1993 and reincorporated in Delaware in 1995. The Company is a multi-business medical device Company that develops, manufactures and markets minimally invasive surgical products, many of which are based on its patented Coblation(r) technology. The Company has grown well beyond its roots in arthroscopy to capitalize on numerous market opportunities across several medical specialties, improving many existing soft-tissue surgical procedures and enabling new minimally invasive procedures. With its innovative technologies, the Company is improving the lives of individuals suffering from conditions as diverse as torn rotator cuffs and anterior cruciate ligaments to herniated discs and enlarged tonsils/tonsillitis. The Company currently markets minimally invasive surgical products across three core business units-ArthroCare Sports Medicine, which include shoulder and knee arthroscopic products; ArthroCare Spine, which include spinal and neurosurgery products; and ArthroCare Ear, Nose and Throat, which include ear, nose, throat and the Visage(r) cosmetic products; - but also has developed, manufactured and marketed Coblation-based and complementary products for application in neurology, cosmetic surgery, urology and gynecology, with research continuing in additional areas. In each of its core business units, the Company is focusing on driving the application of enabling technologies, primarily for plasma-based soft tissue removal, and increasing the number of minimally invasive procedures being performed. The Company is marketing and selling its arthroscopic/sports medicine, spinal surgery, ENT and cosmetic surgery products using a combination of distributors supported by regional sales mangers, a direct sales force and corporate partners to sell its products both domestically and internationally. The Company owns over 170 issued U.S. patents and over 195 issued international patents. The Company's products are considered medical devices and are subject to regulation in the United States, with the approval of FDA for each of its products. Its primary competitors include Medtronic, Inc., Smith & Nephew, Stryker Corporation, Johnson & Johnson, Olympus (through its subsidiary Gyrus) and Arthrex, Inc.
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