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REA Group (ASX:REA) Accounts Receivable : A$241 Mil (As of Dec. 2023)


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What is REA Group Accounts Receivable?

Accounts Receivable are created when a customer has received a product but has not yet paid for that product. REA Group's accounts receivables for the quarter that ended in Dec. 2023 was A$241 Mil.

Accounts receivable can be measured by Days Sales Outstanding. REA Group's Days Sales Outstanding for the quarter that ended in Dec. 2023 was 51.98.

In Ben Graham's calculation of Net-Net Working Capital, accounts receivable are only considered to be worth 75% of book value. REA Group's Net-Net Working Capital per share for the quarter that ended in Dec. 2023 was A$-5.16.


REA Group Accounts Receivable Historical Data

The historical data trend for REA Group's Accounts Receivable can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

REA Group Accounts Receivable Chart

REA Group Annual Data
Trend Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
Accounts Receivable
Get a 7-Day Free Trial Premium Member Only Premium Member Only 108.63 93.50 125.09 137.40 138.00

REA Group Semi-Annual Data
Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
Accounts Receivable Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 153.10 137.40 145.40 138.00 241.40

REA Group Accounts Receivable Calculation

Accounts Receivable is money owed to a business by customers and shown on its Balance Sheet as an asset.


REA Group Accounts Receivable Explanation

1. Accounts Receivable are created when a customer has received a product but has not yet paid for that product. Days Sales Outstanding measures of the average number of days that a company takes to collect revenue after a sale has been made. It is a financial ratio that illustrates how well a company's accounts receivables are being managed.

REA Group's Days Sales Outstanding for the quarter that ended in Dec. 2023 is calculated as:

Days Sales Outstanding
=Accounts Receivable/Revenue*Days in Period
=241.4/847.5*91
=51.98

2. In Ben Graham's calculation of Net-Net Working Capital (NNWC), REA Group's accounts receivable are only considered to be worth 75% of book value:

REA Group's Net-Net Working Capital Per Share for the quarter that ended in Dec. 2023 is calculated as:

Net-Net Working Capital Per Share
=(Cash And Cash Equivalents+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(340.5+0.75 * 241.4+0.5 * 0-1158.9
-0-44.8)/132.117
=-5.16

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Net receivables tells us a great deal about the different competitors in the same industry. In competitive industries, some attempt to gain advantage by offering better credit terms, causing increase in sales and receivables.

If company consistently shows lower % Net receivables to gross sales than competitors, then it usually has some kind of competitive advantage which requires further digging.

Average Days Sales Outstanding is a good indicator for measuring a company's sales channel and customers. A company may book great revenue and earnings growth but never receive payment from their customers. This may force a write-off in the future and depress future earnings.


REA Group Accounts Receivable Related Terms

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REA Group (ASX:REA) Business Description

Traded in Other Exchanges
Address
511 Church Street, Richmond, Melbourne, VIC, AUS, 3121
REA Group is a technology company operating in the real estate sector. REA Group's primary business is a online listings platform for residential real estate, www.realestate.com.au, which is the largest residential real estate listings platform in Australia, at around three times the size of number two, www.domain.com.au, owned by Domain Group. REA Group is majority-owned by News Corp (ASX:NWS), while Domain is majority-owned by rival media company Nine Entertainment (ASX:NEC). REA Group's other businesses include adjacent markets and services, and investments in online listings platforms in Asia.

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