Accounts Receivable are created when a customer has received a product but has not yet paid for that product. Fortrea Holdings's accounts receivables for the quarter that ended in Mar. 2024 was $941 Mil.
Accounts receivable can be measured by Days Sales Outstanding.
Fortrea Holdings's Days Sales Outstanding for the quarter that ended in Mar. 2024 was 129.69.
In Ben Graham's calculation of Net-Net Working Capital, accounts receivable are only considered to be worth 75% of book value. Fortrea Holdings's Net-Net Working Capital per share for the quarter that ended in Mar. 2024 was $-20.70.
Fortrea Holdings Accounts Receivable Historical Data
The historical data trend for Fortrea Holdings's Accounts Receivable can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Accounts Receivable is money owed to a business by customers and shown on its Balance Sheet as an asset.
Fortrea Holdings 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.
Fortrea Holdings's Days Sales Outstanding for the quarter that ended in Mar. 2024 is calculated as:
2. In Ben Graham's calculation of Net-Net Working Capital (NNWC), Fortrea Holdings's accounts receivable are only considered to be worth 75% of book value:
Fortrea Holdings's Net-Net Working Capital Per Share for the quarter that ended in Mar. 2024 is calculated as:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Be Aware
Net receivables tells us a great deal about the different competitors in the same industry. In competitive industries, some attempt to gain advantage by offering better credit terms, causing increase in sales and receivables.
If company consistently shows lower % Net receivables to gross sales than competitors, then it usually has some kind of competitive advantage which requires further digging.
Average Days Sales Outstanding is a good indicator for measuring a company's sales channel and customers. A company may book great revenue and earnings growth but never receive payment from their customers. This may force a write-off in the future and depress future earnings.
Fortrea Holdings Accounts Receivable Related Terms
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Fortrea Holdings (Fortrea Holdings) Business Description
Fortrea Holdings is a late-stage contract research organization, or CRO, that provides comprehensive Phase I through IV clinical trial management, clinical pharmacology, and patient access solutions. The company works with emerging and large biopharma, medical device, and diagnostic companies to run their clinical trials as a functional-service provider, full-service provider, and offers hybrid trials. In 2023, Fortrea was formed as an independent, publicly traded company after LabCorp spun off its clinical development business, which it acquired via its purchase of Covance in 2015 for $6.1 billion. Fortrea has 19,000 staff members across 90 countries.
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