Tag Archives: DSO

Business, Finance, Occupation & Industry

Google: Great Company, Red Flag Stock?

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By Tom Jacobs, The Motley Fool

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Google without a doubt is an astounding company that has changed all of our lives. Research that was impossible, or at least incredibly costly in time and money, is now possible, and at fractions of both. Outsiders probably know only a handful of things that Google is going to dazzle us with. From Google Fiber today, to self-driven cars and cyborg glasses ahead, Google brainiacs will unleash innovation after innovation, without a doubt.

But, as with any public company, it’s a stock, too. Any choice to buy, sell, or hold requires scrutinizing earnings quality indicators that, if low quality, are good predictors of poor stock performance ahead. Days sales outstanding, or DSOs, which is the time it takes revenues to turn into cash in the bank, are job one in earnings quality analysis. And Google’s year-over-year quarterly increase in its DSO for seven of the last eight quarters raises eyebrows.

(Disclosure: My co-author John Del Vecchio and I were Authors@Google, and I intend no ungratefulness here to our most generous hosts. But I know that my Google friends expect no less than callin’ ’em as I see ’em.)

How long to get paid?
Days sales outstanding is calculated for our quarterly analysis as (accounts receivables/revenues) * days in the quarter.

Examine DSOs in two ways. First, look at DSOs year over year to correct for seasonal variations in a business. And then, to smooth it out to capture trends more accurately, take the LTM (last 12 months) average per quarter. If the latter increases consistently each quarter, there could be trouble for the stock, regardless of the overall market‘s broad race to the sky that we’ve seen for the past four years. Look at eight quarters of LTM to perceive the trend over more time. And quarterly year-over-year comparisons can show poor trends that may show up in LTM numbers.

The following table examines year-over-year quarterly DSOs, and then the more important sequential change in LTM DSOs at four companies competing with each other fiercely in many areas: Google , Apple , Microsoft , and Yahoo! . There’s clearly a big fifth in Facebook, but we lack enough data for anything meaningful on DSOs so far. 

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From: http://www.dailyfinance.com/2013/04/12/google-great-company-red-flag-stock/

Company and

Calendar Quarter

Q4 2012

Q3 2012

Q2 2012

Q1 2012

Google: Quarterly DSOs

48

46

45

45 

Year-Over-Year

+4

+3

+1

+1

LTM DSO Avg

46

45

44

44

Seq. LTM Change

+1

+1

0

0

Yahoo ! Quarterly DSOs

67

76

74

74

Year-Over-Year

+1

+7

+4

+1

LTM DSO Avg

73

73

71

70

Seq. TLM Change

0

+2

+1

0

Microsoft : Quarterly DSOs

52

74

67

64

Year-Over-Year

0
Business, Finance, Occupation & Industry

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

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By Seth Jayson, The Motley Fool

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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/

Business, Finance, Occupation & Industry

Is Rose Rock Midstream Going to Burn You?

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By Seth Jayson, The Motley Fool

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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

Business, Finance, Occupation & Industry

Some Numbers at Chart Industries that Make Your Stock Look Good

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By Seth Jayson, The Motley Fool

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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

Business, Finance, Occupation & Industry

Some Numbers at Covanta Holding that Make Your Stock Look Good

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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

Business, Finance, Occupation & Industry

Some Numbers at HCA Holdings that Make Your Stock Look Good

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By Seth Jayson, The Motley Fool

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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

Business, Finance, Occupation & Industry

Will CLARCOR Blow It Next Quarter?

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By Seth Jayson, The Motley Fool

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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

Business, Finance, Occupation & Industry

Will Gulfmark Offshore Blow It Next Quarter?

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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

Business, Finance, Occupation & Industry

What Shorts Might Be Watching at Synutra International

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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

Business, Finance, Occupation & Industry

DXP Enterprises Passes This Key Test

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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

Business, Finance, Occupation & Industry

EnerSys Passes This Key Test

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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

Business, Finance, Occupation & Industry

How Should You Be Playing Great Lakes Dredge &amp; Dock?

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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

Business, Finance, Occupation & Industry

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

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By Seth Jayson, The Motley Fool

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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

Business, Finance, Occupation & Industry

Will J&amp;J Snack Foods Fumble Next Quarter?

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By Seth Jayson, The Motley Fool

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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

Business, Finance, Occupation & Industry

Greenbrier Companies Passes This Key Test

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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

Business, Finance, Occupation & Industry

Something Worth Watching at Quiksilver

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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

Business, Finance, Occupation & Industry

Sunridge Gold's Asmara Project, Eritrea – Feasibility Study on Schedule

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By Business Wirevia The Motley Fool

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Sunridge Gold’s Asmara Project, Eritrea – Feasibility Study on Schedule

VANCOUVER, British Columbia–(BUSINESS WIRE)– Sunridge Gold Corp. (the “Company”) (SGC:TSX.V/SGCNF:OTCQX) is pleased to announce that the Asmara Project Feasibility Study (the “Study”) is on schedule for completion as planned in early May. The Study is being conducted by lead engineer Senet (Pty) Ltd. on four of the five deposits that comprise the Asmara Project and will outline a mining plan that integrates the four deposits being processed at a central concentrator near the large Emba Derho copper-zinc-gold-silver deposit. Furthermore, in order to achieve early cash flow and minimize initial capital costs the Study will include a staged start-up process over the first 3 years of the mine life. A positive prefeasibility study (“PFS“) for the Asmara Project was completed in May 2012.

Variations to the PFS – Staged Start Up

The Asmara Project Feasibility Study will have improvements over the PFS mining plan including a staged start-up as follows:

  • Phase 1A: DSO production – Mine by open-pit, crush, ship and sell high-grade copper and gold material as “direct shipping ore” (“DSO“) material from the supergene copper zone at Debarwa over a 10 to 12 month period; this zone contains 116,000 tonnes at 16.0 % copper, 3.0 g/t gold, and 77.0 g/t silver;
  • Phase 1B: Gold production – Gold heap-leach process plant at Emba Derho to recover gold and silver from the near surface ‘gold caps’ at Emba Derho and Debarwa as well as the gold-only Gupo deposit over a period of 36 to 48 months;
  • Phase 2: Copper production – Mine and process 2.4 million tonnes of high-grade copper supergene ore (less the DSO zone) at a rate of 5,500 tonnes per day (2 million tonnes per year) from Debarwa and Emba Derho for 15 months at the same time as Phase 1B is in production; and
  • Phase 3: Copper and zinc production – Mine and process primary copper and zinc ore at full production from Emba Derho, Debarwa and Adi Nefas at a rate of 11,000 tonnes per day (4 million tonnes per year) …read more

    Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

Some Numbers at Electro Rent that Make Your Stock Look Good

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By Seth Jayson, The Motley Fool

Filed under:

There’s no foolproof way to know the future for Electro Rent (NAS: ELRC) 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 Electro Rent 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 Electro Rent 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. Electro Rent‘s latest average DSO stands at 60.7 days, and the end-of-quarter figure is 55.4 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 Electro Rent 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, Electro Rent‘s year-over-year revenue …read more

Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

This Metric Says You're Smart to Own Sensient Technologies

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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

Business, Finance, Occupation & Industry

This Metric Says You're Smart to Own Vishay Precision Group

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By Seth Jayson, The Motley Fool

Filed under:

There’s no foolproof way to know the future for Vishay Precision Group (NYS: VPG) 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 Vishay Precision 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 Vishay Precision 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. Vishay Precision Group‘s latest average DSO stands at 56.7 days, and the end-of-quarter figure is 52.4 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 Vishay Precision 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