Net Receivables

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Dictionary Says

Definition of 'Net Receivables'

The total money owed to a company by its customers, minus the money owed that will likely never be paid. Net receivables are often expressed as a percentage; the higher the percentage, the more money a company is able to collect from its customers and the better off the company is.
Investopedia Says

Investopedia explains 'Net Receivables'

If a company estimates that 2% of its sales are never going to be paid, net receivables equal 98% (100% - 2%) of the accounts receivable. Using these percentages, if the company's gross receivable accounts total $50,000, it can assume that its net receivables will be $49,000, and its bad debts will be $1,000.
Search results for

'Net Receivables'

  • Operating Cash Flow: Better Than Net Income?

    http://www.investopedia.com/articles/analyst/03/122203.asp
    ... By taking net income and making adjustments to reflect changes in the working capital
    accounts on the balance sheet (receivables, payables, inventories) and ...

  • Understanding Net Present Value

    http://www.investopedia.com/video/play/what-is-net-present-value
    ... Definitions; Investing; Personal Finance; Active Trading; Forex; Videos /.
    Understanding Net Present Value. ... Read More »; Receivables Turnover Ratio. ...

  • What happens if a company doesn't think it will collect on some of ...

    http://www.investopedia.com/ask/answers/06/allowancefordoubtfulaccounts.asp
    ... is calculated, the balance will reduce the total amount of receivables that may ... on
    the income statement every reporting period, which reduces the net income. ...

  • Measuring Company Efficiency

    http://www.investopedia.com/articles/stocks/05/04405.asp
    ... Here is the formula: Receivables Days = 365 Days / (Revenues/Average Receivables). ...
    Wal-Mart generated $244.5 billion in net sales in 2003. ...

  • Company Survival: Cash Conversion Cycle Is Key

    http://www.investopedia.com/articles/fundamental/092402.asp
    ... Cash Conversion Cycle (or Net Operating Cycle) = Average Inventory Collection Period +
    Average Receivables Processing Period – Average Payables Period. ...

  • Financial Statements: Cash Flow | Investopedia

    http://www.investopedia.com/university/financialstatements/financialstatements3.asp
    ... 2. Unusual Changes to Working Capital Accounts (receivables, inventories and payables)
    (Refer ... lines, notice that reported CFO is derived from net income with ...

  • Signs That It Might Be Time To Sell

    http://www.investopedia.com/articles/basics/09/time-to-sell.asp
    ... (To learn more, see Operating Cash Flow: Better Than Net Income?) Falling ... Sustained
    Increase in Corporate Receivables Compared to Sales A company's accounts ...

  • Take On Risk With A Margin of Safety

    http://www.investopedia.com/articles/financial-theory/08/margin-of-safety.asp
    ... If we have it, this net number is based on the company's history of collecting
    receivables, and is a good indicator, but we would still discount it a little ...

  • Will The Real Conn's Please Stand Up

    http://stocks.investopedia.com/stock-analysis/2009/Will-The-Real-Conns-Please-Stand-Up-CONNHGGBBYCHRSRSHADS0911.aspx
    ... revenue in 2008 from its credit program (rather than its net income after operating
    expenses), which was $98.5 million on an average receivables portfolio of ...

  • The Working Capital Position

    http://www.investopedia.com/articles/basics/06/workingcapital.asp
    ... DIO). • Dividing average accounts receivables by net sales per day (net
    sales/365) = days sales outstanding (DSO). • Dividing ...

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