Tag Archives: AR

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Some Numbers at U.S. Silica Holdings that Make Your Stock Look Good

By Seth Jayson, The Motley Fool

Filed under:

There’s no foolproof way to know the future for U.S. Silica Holdings (NYS: SLCA) or any other company. However, certain clues may help you see potential stumbles before they happen — and before your stock craters as a result.

A cloudy crystal ball
In this series, we use accounts receivable and days sales outstanding to judge a company’s current health and future prospects. It’s an important step in separating the pretenders from the market’s best stocks. Alone, AR — the amount of money owed the company — and DSO — the number of days’ worth of sales owed to the company — don’t tell you much. However, by considering the trends in AR and DSO, you can sometimes get a window onto the future.

Sometimes, problems with AR or DSO simply indicate a change in the business (like an acquisition), or lax collections. However, AR that grows more quickly than revenue, or ballooning DSO, can, at times, suggest a desperate company that’s trying to boost sales by giving its customers overly generous payment terms. Alternately, it can indicate that the company sprinted to book a load of sales at the end of the quarter, like used-car dealers on the 29th of the month. (Sometimes, companies do both.)

Why might an upstanding firm like U.S. Silica Holdings do this? For the same reason any other company might: to make the numbers. Investors don’t like revenue shortfalls, and employees don’t like reporting them to their superiors.

Is U.S. Silica Holdings sending any potential warning signs? Take a look at the chart below, which plots revenue growth against AR growth, and DSO:

Source: S&P Capital IQ. Data is current as of last fully reported fiscal quarter. FQ = fiscal quarter.

The standard way to calculate DSO uses average accounts receivable. I prefer to look at end-of-quarter receivables, but I’ve plotted both above.

Watching the trends
When that red line (AR growth) crosses above the green line (revenue growth), I know I need to consult the filings. Similarly, a spike in the blue bars indicates a trend worth worrying about. U.S. Silica Holdings‘s latest average DSO stands at 44.2 days, and the end-of-quarter figure is 42.9 days. Differences in business models can generate variations in DSO, and business needs can require occasional fluctuations, but all things being equal, I like to see this figure stay steady. So, let’s get back to our original question: Based on DSO and sales, does U.S. Silica Holdings look like it might miss its numbers in the next quarter or two?

I don’t think so. AR and DSO look healthy. For the last fully reported fiscal

From: http://www.dailyfinance.com/2013/04/12/some-numbers-at-us-silica-holdings-that-make-your/

Is Rose Rock Midstream Going to Burn You?

By Seth Jayson, The Motley Fool

Filed under:

There’s no foolproof way to know the future for Rose Rock Midstream (NYS: RRMS) or any other company. However, certain clues may help you see potential stumbles before they happen — and before your stock craters as a result.

A cloudy crystal ball
In this series, we use accounts receivable and days sales outstanding to judge a company’s current health and future prospects. It’s an important step in separating the pretenders from the market’s best stocks. Alone, AR — the amount of money owed the company — and DSO — the number of days’ worth of sales owed to the company — don’t tell you much. However, by considering the trends in AR and DSO, you can sometimes get a window onto the future.

Sometimes, problems with AR or DSO simply indicate a change in the business (like an acquisition), or lax collections. However, AR that grows more quickly than revenue, or ballooning DSO, can, at times, suggest a desperate company that’s trying to boost sales by giving its customers overly generous payment terms. Alternately, it can indicate that the company sprinted to book a load of sales at the end of the quarter, like used-car dealers on the 29th of the month. (Sometimes, companies do both.)

Why might an upstanding firm like Rose Rock Midstream do this? For the same reason any other company might: to make the numbers. Investors don’t like revenue shortfalls, and employees don’t like reporting them to their superiors.

Is Rose Rock Midstream sending any potential warning signs? Take a look at the chart below, which plots revenue growth against AR growth, and DSO:

Source: S&P Capital IQ. Data is current as of last fully reported fiscal quarter. FQ = fiscal quarter.

The standard way to calculate DSO uses average accounts receivable. I prefer to look at end-of-quarter receivables, but I’ve plotted both above.

Watching the trends
When that red line (AR growth) crosses above the green line (revenue growth), I know I need to consult the filings. Similarly, a spike in the blue bars indicates a trend worth worrying about. Rose Rock Midstream‘s latest average DSO stands at 129.9 days, and the end-of-quarter figure is 135.2 days. Differences in business models can generate variations in DSO, and business needs can require occasional fluctuations, but all things being equal, I like to see this figure stay steady. So, let’s get back to our original question: Based on DSO and sales, does Rose Rock Midstream look like it might miss its numbers in the next quarter or two?

The numbers don’t paint a clear picture. For the last fully reported fiscal quarter, Rose

Source: FULL ARTICLE at DailyFinance

Some Numbers at Chart Industries that Make Your Stock Look Good

By Seth Jayson, The Motley Fool

Filed under:

There’s no foolproof way to know the future for Chart Industries (NAS: GTLS) or any other company. However, certain clues may help you see potential stumbles before they happen — and before your stock craters as a result.

A cloudy crystal ball
In this series, we use accounts receivable and days sales outstanding to judge a company’s current health and future prospects. It’s an important step in separating the pretenders from the market’s best stocks. Alone, AR — the amount of money owed the company — and DSO — the number of days’ worth of sales owed to the company — don’t tell you much. However, by considering the trends in AR and DSO, you can sometimes get a window onto the future.

Sometimes, problems with AR or DSO simply indicate a change in the business (like an acquisition), or lax collections. However, AR that grows more quickly than revenue, or ballooning DSO, can, at times, suggest a desperate company that’s trying to boost sales by giving its customers overly generous payment terms. Alternately, it can indicate that the company sprinted to book a load of sales at the end of the quarter, like used-car dealers on the 29th of the month. (Sometimes, companies do both.)

Why might an upstanding firm like Chart Industries do this? For the same reason any other company might: to make the numbers. Investors don’t like revenue shortfalls, and employees don’t like reporting them to their superiors.

Is Chart Industries sending any potential warning signs? Take a look at the chart below, which plots revenue growth against AR growth, and DSO:

Source: S&P Capital IQ. Data is current as of last fully reported fiscal quarter. FQ = fiscal quarter.

The standard way to calculate DSO uses average accounts receivable. I prefer to look at end-of-quarter receivables, but I’ve plotted both above.

Watching the trends
When that red line (AR growth) crosses above the green line (revenue growth), I know I need to consult the filings. Similarly, a spike in the blue bars indicates a trend worth worrying about. Chart Industries‘s latest average DSO stands at 57.9 days, and the end-of-quarter figure is 53.2 days. Differences in business models can generate variations in DSO, and business needs can require occasional fluctuations, but all things being equal, I like to see this figure stay steady. So, let’s get back to our original question: Based on DSO and sales, does Chart Industries look like it might miss its numbers in the next quarter or two?

I don’t think so. AR and DSO look healthy. For the last fully reported fiscal quarter, Chart Industries‘s year-over-year revenue

Source: FULL ARTICLE at DailyFinance

Some Numbers at Covanta Holding that Make Your Stock Look Good

By Seth Jayson, The Motley Fool

Filed under:

There’s no foolproof way to know the future for Covanta Holding (NYS: CVA) or any other company. However, certain clues may help you see potential stumbles before they happen — and before your stock craters as a result.

A cloudy crystal ball
In this series, we use accounts receivable and days sales outstanding to judge a company’s current health and future prospects. It’s an important step in separating the pretenders from the market’s best stocks. Alone, AR — the amount of money owed the company — and DSO — the number of days’ worth of sales owed to the company — don’t tell you much. However, by considering the trends in AR and DSO, you can sometimes get a window onto the future.

Sometimes, problems with AR or DSO simply indicate a change in the business (like an acquisition), or lax collections. However, AR that grows more quickly than revenue, or ballooning DSO, can, at times, suggest a desperate company that’s trying to boost sales by giving its customers overly generous payment terms. Alternately, it can indicate that the company sprinted to book a load of sales at the end of the quarter, like used-car dealers on the 29th of the month. (Sometimes, companies do both.)

Why might an upstanding firm like Covanta Holding do this? For the same reason any other company might: to make the numbers. Investors don’t like revenue shortfalls, and employees don’t like reporting them to their superiors.

Is Covanta Holding sending any potential warning signs? Take a look at the chart below, which plots revenue growth against AR growth, and DSO:

Source: S&P Capital IQ. Data is current as of last fully reported fiscal quarter. FQ = fiscal quarter.

The standard way to calculate DSO uses average accounts receivable. I prefer to look at end-of-quarter receivables, but I’ve plotted both above.

Watching the trends
When that red line (AR growth) crosses above the green line (revenue growth), I know I need to consult the filings. Similarly, a spike in the blue bars indicates a trend worth worrying about. Covanta Holding‘s latest average DSO stands at 67.4 days, and the end-of-quarter figure is 58.6 days. Differences in business models can generate variations in DSO, and business needs can require occasional fluctuations, but all things being equal, I like to see this figure stay steady. So, let’s get back to our original question: Based on DSO and sales, does Covanta Holding look like it might miss its numbers in the next quarter or two?

I don’t think so. AR and DSO look healthy. For the last fully reported fiscal quarter, Covanta Holding‘s year-over-year revenue

Source: FULL ARTICLE at DailyFinance

Some Numbers at HCA Holdings that Make Your Stock Look Good

By Seth Jayson, The Motley Fool

Filed under:

There’s no foolproof way to know the future for HCA Holdings (NYS: HCA) or any other company. However, certain clues may help you see potential stumbles before they happen — and before your stock craters as a result.

A cloudy crystal ball
In this series, we use accounts receivable and days sales outstanding to judge a company’s current health and future prospects. It’s an important step in separating the pretenders from the market’s best stocks. Alone, AR — the amount of money owed the company — and DSO — the number of days’ worth of sales owed to the company — don’t tell you much. However, by considering the trends in AR and DSO, you can sometimes get a window onto the future.

Sometimes, problems with AR or DSO simply indicate a change in the business (like an acquisition), or lax collections. However, AR that grows more quickly than revenue, or ballooning DSO, can, at times, suggest a desperate company that’s trying to boost sales by giving its customers overly generous payment terms. Alternately, it can indicate that the company sprinted to book a load of sales at the end of the quarter, like used-car dealers on the 29th of the month. (Sometimes, companies do both.)

Why might an upstanding firm like HCA Holdings do this? For the same reason any other company might: to make the numbers. Investors don’t like revenue shortfalls, and employees don’t like reporting them to their superiors.

Is HCA Holdings sending any potential warning signs? Take a look at the chart below, which plots revenue growth against AR growth, and DSO:

Source: S&P Capital IQ. Data is current as of last fully reported fiscal quarter. FQ = fiscal quarter.

The standard way to calculate DSO uses average accounts receivable. I prefer to look at end-of-quarter receivables, but I’ve plotted both above.

Watching the trends
When that red line (AR growth) crosses above the green line (revenue growth), I know I need to consult the filings. Similarly, a spike in the blue bars indicates a trend worth worrying about. HCA Holdings’s latest average DSO stands at 50.7 days, and the end-of-quarter figure is 51.3 days. Differences in business models can generate variations in DSO, and business needs can require occasional fluctuations, but all things being equal, I like to see this figure stay steady. So, let’s get back to our original question: Based on DSO and sales, does HCA Holdings look like it might miss its numbers in the next quarter or two?

I don’t think so. AR and DSO look healthy. For the last fully reported fiscal quarter, HCA Holdings’s year-over-year revenue

Source: FULL ARTICLE at DailyFinance

Will CLARCOR Blow It Next Quarter?

By Seth Jayson, The Motley Fool

Filed under:

There’s no foolproof way to know the future for CLARCOR (NYS: CLC) or any other company. However, certain clues may help you see potential stumbles before they happen — and before your stock craters as a result.

A cloudy crystal ball
In this series, we use accounts receivable and days sales outstanding to judge a company’s current health and future prospects. It’s an important step in separating the pretenders from the market’s best stocks. Alone, AR — the amount of money owed the company — and DSO — the number of days’ worth of sales owed to the company — don’t tell you much. However, by considering the trends in AR and DSO, you can sometimes get a window onto the future.

Sometimes, problems with AR or DSO simply indicate a change in the business (like an acquisition), or lax collections. However, AR that grows more quickly than revenue, or ballooning DSO, can, at times, suggest a desperate company that’s trying to boost sales by giving its customers overly generous payment terms. Alternately, it can indicate that the company sprinted to book a load of sales at the end of the quarter, like used-car dealers on the 29th of the month. (Sometimes, companies do both.)

Why might an upstanding firm like CLARCOR do this? For the same reason any other company might: to make the numbers. Investors don’t like revenue shortfalls, and employees don’t like reporting them to their superiors.

Is CLARCOR sending any potential warning signs? Take a look at the chart below, which plots revenue growth against AR growth, and DSO:

Source: S&P Capital IQ. Data is current as of last fully reported fiscal quarter. FQ = fiscal quarter.

The standard way to calculate DSO uses average accounts receivable. I prefer to look at end-of-quarter receivables, but I’ve plotted both above.

Watching the trends
When that red line (AR growth) crosses above the green line (revenue growth), I know I need to consult the filings. Similarly, a spike in the blue bars indicates a trend worth worrying about. CLARCOR‘s latest average DSO stands at 73.7 days, and the end-of-quarter figure is 71.2 days. Differences in business models can generate variations in DSO, and business needs can require occasional fluctuations, but all things being equal, I like to see this figure stay steady. So, let’s get back to our original question: Based on DSO and sales, does CLARCOR look like it might miss its numbers in the next quarter or two?

The numbers don’t paint a clear picture. For the last fully reported fiscal quarter, CLARCOR‘s year-over-year revenue shrank 0.4%, and its AR dropped 0.6%. That

Source: FULL ARTICLE at DailyFinance

Will Gulfmark Offshore Blow It Next Quarter?

By Seth Jayson, The Motley Fool

Filed under:

There’s no foolproof way to know the future for Gulfmark Offshore (NYS: GLF) or any other company. However, certain clues may help you see potential stumbles before they happen — and before your stock craters as a result.

A cloudy crystal ball
In this series, we use accounts receivable and days sales outstanding to judge a company’s current health and future prospects. It’s an important step in separating the pretenders from the market’s best stocks. Alone, AR — the amount of money owed the company — and DSO — the number of days’ worth of sales owed to the company — don’t tell you much. However, by considering the trends in AR and DSO, you can sometimes get a window onto the future.

Sometimes, problems with AR or DSO simply indicate a change in the business (like an acquisition), or lax collections. However, AR that grows more quickly than revenue, or ballooning DSO, can, at times, suggest a desperate company that’s trying to boost sales by giving its customers overly generous payment terms. Alternately, it can indicate that the company sprinted to book a load of sales at the end of the quarter, like used-car dealers on the 29th of the month. (Sometimes, companies do both.)

Why might an upstanding firm like Gulfmark Offshore do this? For the same reason any other company might: to make the numbers. Investors don’t like revenue shortfalls, and employees don’t like reporting them to their superiors.

Is Gulfmark Offshore sending any potential warning signs? Take a look at the chart below, which plots revenue growth against AR growth, and DSO:

Source: S&P Capital IQ. Data is current as of last fully reported fiscal quarter. FQ = fiscal quarter.

The standard way to calculate DSO uses average accounts receivable. I prefer to look at end-of-quarter receivables, but I’ve plotted both above.

Watching the trends
When that red line (AR growth) crosses above the green line (revenue growth), I know I need to consult the filings. Similarly, a spike in the blue bars indicates a trend worth worrying about. Gulfmark Offshore‘s latest average DSO stands at 86.8 days, and the end-of-quarter figure is 83.0 days. Differences in business models can generate variations in DSO, and business needs can require occasional fluctuations, but all things being equal, I like to see this figure stay steady. So, let’s get back to our original question: Based on DSO and sales, does Gulfmark Offshore look like it might miss its numbers in the next quarter or two?

The numbers don’t paint a clear picture. For the last fully reported fiscal quarter, Gulfmark Offshore‘s year-over-year revenue shrank 4.9%,

Source: FULL ARTICLE at DailyFinance

What Shorts Might Be Watching at Synutra International

By Seth Jayson, The Motley Fool

Filed under:

There’s no foolproof way to know the future for Synutra International (NAS: SYUT) or any other company. However, certain clues may help you see potential stumbles before they happen — and before your stock craters as a result.

A cloudy crystal ball
In this series, we use accounts receivable and days sales outstanding to judge a company’s current health and future prospects. It’s an important step in separating the pretenders from the market’s best stocks. Alone, AR — the amount of money owed the company — and DSO — the number of days’ worth of sales owed to the company — don’t tell you much. However, by considering the trends in AR and DSO, you can sometimes get a window onto the future.

Sometimes, problems with AR or DSO simply indicate a change in the business (like an acquisition), or lax collections. However, AR that grows more quickly than revenue, or ballooning DSO, can, at times, suggest a desperate company that’s trying to boost sales by giving its customers overly generous payment terms. Alternately, it can indicate that the company sprinted to book a load of sales at the end of the quarter, like used-car dealers on the 29th of the month. (Sometimes, companies do both.)

Why might an upstanding firm like Synutra International do this? For the same reason any other company might: to make the numbers. Investors don’t like revenue shortfalls, and employees don’t like reporting them to their superiors.

Is Synutra International sending any potential warning signs? Take a look at the chart below, which plots revenue growth against AR growth, and DSO:

Source: S&P Capital IQ. Data is current as of last fully reported fiscal quarter. FQ = fiscal quarter.

The standard way to calculate DSO uses average accounts receivable. I prefer to look at end-of-quarter receivables, but I’ve plotted both above.

Watching the trends
When that red line (AR growth) crosses above the green line (revenue growth), I know I need to consult the filings. Similarly, a spike in the blue bars indicates a trend worth worrying about. Synutra International‘s latest average DSO stands at 66.8 days, and the end-of-quarter figure is 65.2 days. Differences in business models can generate variations in DSO, and business needs can require occasional fluctuations, but all things being equal, I like to see this figure stay steady. So, let’s get back to our original question: Based on DSO and sales, does Synutra International look like it might miss its numbers in the next quarter or two?

The numbers don’t paint a clear picture. For the last fully reported fiscal quarter, Synutra International‘s year-over-year revenue shrank 36.0%,

Source: FULL ARTICLE at DailyFinance

DXP Enterprises Passes This Key Test

By Seth Jayson, The Motley Fool

Filed under:

There’s no foolproof way to know the future for DXP Enterprises (NAS: DXPE) or any other company. However, certain clues may help you see potential stumbles before they happen — and before your stock craters as a result.

A cloudy crystal ball
In this series, we use accounts receivable and days sales outstanding to judge a company’s current health and future prospects. It’s an important step in separating the pretenders from the market’s best stocks. Alone, AR — the amount of money owed the company — and DSO — the number of days’ worth of sales owed to the company — don’t tell you much. However, by considering the trends in AR and DSO, you can sometimes get a window onto the future.

Sometimes, problems with AR or DSO simply indicate a change in the business (like an acquisition), or lax collections. However, AR that grows more quickly than revenue, or ballooning DSO, can, at times, suggest a desperate company that’s trying to boost sales by giving its customers overly generous payment terms. Alternately, it can indicate that the company sprinted to book a load of sales at the end of the quarter, like used-car dealers on the 29th of the month. (Sometimes, companies do both.)

Why might an upstanding firm like DXP Enterprises do this? For the same reason any other company might: to make the numbers. Investors don’t like revenue shortfalls, and employees don’t like reporting them to their superiors.

Is DXP Enterprises sending any potential warning signs? Take a look at the chart below, which plots revenue growth against AR growth, and DSO:

Source: S&P Capital IQ. Data is current as of last fully reported fiscal quarter. FQ = fiscal quarter.

The standard way to calculate DSO uses average accounts receivable. I prefer to look at end-of-quarter receivables, but I’ve plotted both above.

Watching the trends
When that red line (AR growth) crosses above the green line (revenue growth), I know I need to consult the filings. Similarly, a spike in the blue bars indicates a trend worth worrying about. DXP Enterprises’s latest average DSO stands at 57.1 days, and the end-of-quarter figure is 54.9 days. Differences in business models can generate variations in DSO, and business needs can require occasional fluctuations, but all things being equal, I like to see this figure stay steady. So, let’s get back to our original question: Based on DSO and sales, does DXP Enterprises look like it might miss its numbers in the next quarter or two?

I don’t think so. AR and DSO look healthy. For the last fully reported fiscal quarter, DXP Enterprises’s year-over-year revenue …read more

Source: FULL ARTICLE at DailyFinance

EnerSys Passes This Key Test

By Seth Jayson, The Motley Fool

Filed under:

There’s no foolproof way to know the future for EnerSys (NYS: ENS) or any other company. However, certain clues may help you see potential stumbles before they happen — and before your stock craters as a result.

A cloudy crystal ball
In this series, we use accounts receivable and days sales outstanding to judge a company’s current health and future prospects. It’s an important step in separating the pretenders from the market’s best stocks. Alone, AR — the amount of money owed the company — and DSO — the number of days’ worth of sales owed to the company — don’t tell you much. However, by considering the trends in AR and DSO, you can sometimes get a window onto the future.

Sometimes, problems with AR or DSO simply indicate a change in the business (like an acquisition), or lax collections. However, AR that grows more quickly than revenue, or ballooning DSO, can, at times, suggest a desperate company that’s trying to boost sales by giving its customers overly generous payment terms. Alternately, it can indicate that the company sprinted to book a load of sales at the end of the quarter, like used-car dealers on the 29th of the month. (Sometimes, companies do both.)

Why might an upstanding firm like EnerSys do this? For the same reason any other company might: to make the numbers. Investors don’t like revenue shortfalls, and employees don’t like reporting them to their superiors.

Is EnerSys sending any potential warning signs? Take a look at the chart below, which plots revenue growth against AR growth, and DSO:

Source: S&P Capital IQ. Data is current as of last fully reported fiscal quarter. FQ = fiscal quarter.

The standard way to calculate DSO uses average accounts receivable. I prefer to look at end-of-quarter receivables, but I’ve plotted both above.

Watching the trends
When that red line (AR growth) crosses above the green line (revenue growth), I know I need to consult the filings. Similarly, a spike in the blue bars indicates a trend worth worrying about. EnerSys’s latest average DSO stands at 76.2 days, and the end-of-quarter figure is 75.1 days. Differences in business models can generate variations in DSO, and business needs can require occasional fluctuations, but all things being equal, I like to see this figure stay steady. So, let’s get back to our original question: Based on DSO and sales, does EnerSys look like it might miss its numbers in the next quarter or two?

I don’t think so. AR and DSO look healthy. For the last fully reported fiscal quarter, EnerSys’s year-over-year revenue shrank 2.9%, and its AR grew …read more

Source: FULL ARTICLE at DailyFinance

How Should You Be Playing Great Lakes Dredge & Dock?

By Seth Jayson, The Motley Fool

Filed under:

There’s no foolproof way to know the future for Great Lakes Dredge & Dock (NAS: GLDD) or any other company. However, certain clues may help you see potential stumbles before they happen — and before your stock craters as a result.

A cloudy crystal ball
In this series, we use accounts receivable and days sales outstanding to judge a company’s current health and future prospects. It’s an important step in separating the pretenders from the market’s best stocks. Alone, AR — the amount of money owed the company — and DSO — the number of days’ worth of sales owed to the company — don’t tell you much. However, by considering the trends in AR and DSO, you can sometimes get a window onto the future.

Sometimes, problems with AR or DSO simply indicate a change in the business (like an acquisition), or lax collections. However, AR that grows more quickly than revenue, or ballooning DSO, can, at times, suggest a desperate company that’s trying to boost sales by giving its customers overly generous payment terms. Alternately, it can indicate that the company sprinted to book a load of sales at the end of the quarter, like used-car dealers on the 29th of the month. (Sometimes, companies do both.)

Why might an upstanding firm like Great Lakes Dredge & Dock do this? For the same reason any other company might: to make the numbers. Investors don’t like revenue shortfalls, and employees don’t like reporting them to their superiors.

Is Great Lakes Dredge & Dock sending any potential warning signs? Take a look at the chart below, which plots revenue growth against AR growth, and DSO:

Source: S&P Capital IQ. Data is current as of last fully reported fiscal quarter. FQ = fiscal quarter.

The standard way to calculate DSO uses average accounts receivable. I prefer to look at end-of-quarter receivables, but I’ve plotted both above.

Watching the trends
When that red line (AR growth) crosses above the green line (revenue growth), I know I need to consult the filings. Similarly, a spike in the blue bars indicates a trend worth worrying about. Great Lakes Dredge & Dock’s latest average DSO stands at 90.4 days, and the end-of-quarter figure is 97.2 days. Differences in business models can generate variations in DSO, and business needs can require occasional fluctuations, but all things being equal, I like to see this figure stay steady. So, let’s get back to our original question: Based on DSO and sales, does Great Lakes Dredge & Dock look like it might miss its numbers in the next quarter or two?

The numbers don’t paint a …read more

Source: FULL ARTICLE at DailyFinance

Some Numbers at Simcere Pharmaceutical Group. that Make Your Stock Look Good

By Seth Jayson, The Motley Fool

Filed under:

There’s no foolproof way to know the future for Simcere Pharmaceutical Group. (NYS: SCR) or any other company. However, certain clues may help you see potential stumbles before they happen — and before your stock craters as a result.

A cloudy crystal ball
In this series, we use accounts receivable and days sales outstanding to judge a company’s current health and future prospects. It’s an important step in separating the pretenders from the market’s best stocks. Alone, AR — the amount of money owed the company — and DSO — the number of days’ worth of sales owed to the company — don’t tell you much. However, by considering the trends in AR and DSO, you can sometimes get a window onto the future.

Sometimes, problems with AR or DSO simply indicate a change in the business (like an acquisition), or lax collections. However, AR that grows more quickly than revenue, or ballooning DSO, can, at times, suggest a desperate company that’s trying to boost sales by giving its customers overly generous payment terms. Alternately, it can indicate that the company sprinted to book a load of sales at the end of the quarter, like used-car dealers on the 29th of the month. (Sometimes, companies do both.)

Why might an upstanding firm like Simcere Pharmaceutical Group. do this? For the same reason any other company might: to make the numbers. Investors don’t like revenue shortfalls, and employees don’t like reporting them to their superiors.

Is Simcere Pharmaceutical Group. sending any potential warning signs? Take a look at the chart below, which plots revenue growth against AR growth, and DSO:

Source: S&P Capital IQ. Data is current as of last fully reported fiscal quarter. FQ = fiscal quarter.

The standard way to calculate DSO uses average accounts receivable. I prefer to look at end-of-quarter receivables, but I’ve plotted both above.

Watching the trends
When that red line (AR growth) crosses above the green line (revenue growth), I know I need to consult the filings. Similarly, a spike in the blue bars indicates a trend worth worrying about. Simcere Pharmaceutical Group‘s latest average DSO stands at 184.1 days, and the end-of-quarter figure is 186.2 days. Differences in business models can generate variations in DSO, and business needs can require occasional fluctuations, but all things being equal, I like to see this figure stay steady. So, let’s get back to our original question: Based on DSO and sales, does Simcere Pharmaceutical Group. look like it might miss its numbers in the next quarter or two?

I don’t think so. AR and DSO look healthy. For the last fully reported fiscal …read more

Source: FULL ARTICLE at DailyFinance

Will J&J Snack Foods Fumble Next Quarter?

By Seth Jayson, The Motley Fool

Filed under:

There’s no foolproof way to know the future for J&J Snack Foods (NAS: JJSF) or any other company. However, certain clues may help you see potential stumbles before they happen — and before your stock craters as a result.

A cloudy crystal ball
In this series, we use accounts receivable and days sales outstanding to judge a company’s current health and future prospects. It’s an important step in separating the pretenders from the market’s best stocks. Alone, AR — the amount of money owed the company — and DSO — the number of days’ worth of sales owed to the company — don’t tell you much. However, by considering the trends in AR and DSO, you can sometimes get a window onto the future.

Sometimes, problems with AR or DSO simply indicate a change in the business (like an acquisition), or lax collections. However, AR that grows more quickly than revenue, or ballooning DSO, can, at times, suggest a desperate company that’s trying to boost sales by giving its customers overly generous payment terms. Alternately, it can indicate that the company sprinted to book a load of sales at the end of the quarter, like used-car dealers on the 29th of the month. (Sometimes, companies do both.)

Why might an upstanding firm like J&J Snack Foods do this? For the same reason any other company might: to make the numbers. Investors don’t like revenue shortfalls, and employees don’t like reporting them to their superiors.

Is J&J Snack Foods sending any potential warning signs? Take a look at the chart below, which plots revenue growth against AR growth, and DSO:

Source: S&P Capital IQ. Data is current as of last fully reported fiscal quarter. FQ = fiscal quarter.

The standard way to calculate DSO uses average accounts receivable. I prefer to look at end-of-quarter receivables, but I’ve plotted both above.

Watching the trends
When that red line (AR growth) crosses above the green line (revenue growth), I know I need to consult the filings. Similarly, a spike in the blue bars indicates a trend worth worrying about. J&J Snack Foods’s latest average DSO stands at 34.0 days, and the end-of-quarter figure is 31.7 days. Differences in business models can generate variations in DSO, and business needs can require occasional fluctuations, but all things being equal, I like to see this figure stay steady. So, let’s get back to our original question: Based on DSO and sales, does J&J Snack Foods look like it might miss its numbers in the next quarter or two?

The numbers don’t paint a clear picture. For the last fully reported fiscal quarter, J&J …read more

Source: FULL ARTICLE at DailyFinance

Greenbrier Companies Passes This Key Test

By Seth Jayson, The Motley Fool

Filed under:

There’s no foolproof way to know the future for Greenbrier Companies (NYS: GBX) or any other company. However, certain clues may help you see potential stumbles before they happen — and before your stock craters as a result.

A cloudy crystal ball
In this series, we use accounts receivable and days sales outstanding to judge a company’s current health and future prospects. It’s an important step in separating the pretenders from the market’s best stocks. Alone, AR — the amount of money owed the company — and DSO — the number of days’ worth of sales owed to the company — don’t tell you much. However, by considering the trends in AR and DSO, you can sometimes get a window onto the future.

Sometimes, problems with AR or DSO simply indicate a change in the business (like an acquisition), or lax collections. However, AR that grows more quickly than revenue, or ballooning DSO, can, at times, suggest a desperate company that’s trying to boost sales by giving its customers overly generous payment terms. Alternately, it can indicate that the company sprinted to book a load of sales at the end of the quarter, like used-car dealers on the 29th of the month. (Sometimes, companies do both.)

Why might an upstanding firm like Greenbrier Companies do this? For the same reason any other company might: to make the numbers. Investors don’t like revenue shortfalls, and employees don’t like reporting them to their superiors.

Is Greenbrier Companies sending any potential warning signs? Take a look at the chart below, which plots revenue growth against AR growth, and DSO:

Source: S&P Capital IQ. Data is current as of last fully reported fiscal quarter. FQ = fiscal quarter.

The standard way to calculate DSO uses average accounts receivable. I prefer to look at end-of-quarter receivables, but I’ve plotted both above.

Watching the trends
When that red line (AR growth) crosses above the green line (revenue growth), I know I need to consult the filings. Similarly, a spike in the blue bars indicates a trend worth worrying about. Greenbrier Companies‘s latest average DSO stands at 33.4 days, and the end-of-quarter figure is 30.3 days. Differences in business models can generate variations in DSO, and business needs can require occasional fluctuations, but all things being equal, I like to see this figure stay steady. So, let’s get back to our original question: Based on DSO and sales, does Greenbrier Companies look like it might miss its numbers in the next quarter or two?

I don’t think so. AR and DSO look healthy. For the last fully reported fiscal quarter, Greenbrier Companies‘s year-over-year revenue …read more

Source: FULL ARTICLE at DailyFinance

Something Worth Watching at Quiksilver

By Seth Jayson, The Motley Fool

Filed under:

There’s no foolproof way to know the future for Quiksilver (NYS: ZQK) or any other company. However, certain clues may help you see potential stumbles before they happen — and before your stock craters as a result.

A cloudy crystal ball
In this series, we use accounts receivable and days sales outstanding to judge a company’s current health and future prospects. It’s an important step in separating the pretenders from the market’s best stocks. Alone, AR — the amount of money owed the company — and DSO — the number of days’ worth of sales owed to the company — don’t tell you much. However, by considering the trends in AR and DSO, you can sometimes get a window onto the future.

Sometimes, problems with AR or DSO simply indicate a change in the business (like an acquisition), or lax collections. However, AR that grows more quickly than revenue, or ballooning DSO, can, at times, suggest a desperate company that’s trying to boost sales by giving its customers overly generous payment terms. Alternately, it can indicate that the company sprinted to book a load of sales at the end of the quarter, like used-car dealers on the 29th of the month. (Sometimes, companies do both.)

Why might an upstanding firm like Quiksilver do this? For the same reason any other company might: to make the numbers. Investors don’t like revenue shortfalls, and employees don’t like reporting them to their superiors.

Is Quiksilver sending any potential warning signs? Take a look at the chart below, which plots revenue growth against AR growth, and DSO:

Source: S&P Capital IQ. Data is current as of last fully reported fiscal quarter. FQ = fiscal quarter.

The standard way to calculate DSO uses average accounts receivable. I prefer to look at end-of-quarter receivables, but I’ve plotted both above.

Watching the trends
When that red line (AR growth) crosses above the green line (revenue growth), I know I need to consult the filings. Similarly, a spike in the blue bars indicates a trend worth worrying about. Quiksilver’s latest average DSO stands at 82.5 days, and the end-of-quarter figure is 72.5 days. Differences in business models can generate variations in DSO, and business needs can require occasional fluctuations, but all things being equal, I like to see this figure stay steady. So, let’s get back to our original question: Based on DSO and sales, does Quiksilver look like it might miss its numbers in the next quarter or two?

The numbers don’t paint a clear picture. For the last fully reported fiscal quarter, Quiksilver’s year-over-year revenue shrank 4.1%, and its AR grew 5.5%. That …read more

Source: FULL ARTICLE at DailyFinance

This Metric Says You're Smart to Own Sensient Technologies

By Seth Jayson, The Motley Fool

Filed under:

There’s no foolproof way to know the future for Sensient Technologies (NYS: SXT) or any other company. However, certain clues may help you see potential stumbles before they happen — and before your stock craters as a result.

A cloudy crystal ball
In this series, we use accounts receivable and days sales outstanding to judge a company’s current health and future prospects. It’s an important step in separating the pretenders from the market’s best stocks. Alone, AR — the amount of money owed the company — and DSO — the number of days’ worth of sales owed to the company — don’t tell you much. However, by considering the trends in AR and DSO, you can sometimes get a window onto the future.

Sometimes, problems with AR or DSO simply indicate a change in the business (like an acquisition), or lax collections. However, AR that grows more quickly than revenue, or ballooning DSO, can, at times, suggest a desperate company that’s trying to boost sales by giving its customers overly generous payment terms. Alternately, it can indicate that the company sprinted to book a load of sales at the end of the quarter, like used-car dealers on the 29th of the month. (Sometimes, companies do both.)

Why might an upstanding firm like Sensient Technologies do this? For the same reason any other company might: to make the numbers. Investors don’t like revenue shortfalls, and employees don’t like reporting them to their superiors.

Is Sensient Technologies sending any potential warning signs? Take a look at the chart below, which plots revenue growth against AR growth, and DSO:

Source: S&P Capital IQ. Data is current as of last fully reported fiscal quarter. FQ = fiscal quarter.

The standard way to calculate DSO uses average accounts receivable. I prefer to look at end-of-quarter receivables, but I’ve plotted both above.

Watching the trends
When that red line (AR growth) crosses above the green line (revenue growth), I know I need to consult the filings. Similarly, a spike in the blue bars indicates a trend worth worrying about. Sensient Technologies‘s latest average DSO stands at 62.5 days, and the end-of-quarter figure is 61.4 days. Differences in business models can generate variations in DSO, and business needs can require occasional fluctuations, but all things being equal, I like to see this figure stay steady. So, let’s get back to our original question: Based on DSO and sales, does Sensient Technologies look like it might miss its numbers in the next quarter or two?

I don’t think so. AR and DSO look healthy. For the last fully reported fiscal quarter, Sensient Technologies‘s year-over-year revenue …read more

Source: FULL ARTICLE at DailyFinance