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The shareholder speculated that the Highland groups "lent money to yet another entity, Highland 2000, where they could buy the stock and then show a big receivable at Highland Video and Highland Prestige without raising questions from the banks".
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Or that the customer has suddenly been hit by a big lawsuit, inadequate insurance, stale inventory or bad receivables?
No problem, WorldCom says: Yes, it will soon take up to $20 billion in charges to shrink goodwill, but it won't write down network assets or take a big bath on receivables.
The startup is launching the second version of its platform today and now focuses on big companies with accounts receivable teams.
Lack of capital will destroy your business over time, lack of liquidity will destroy it in a heartbeat, and accounts receivable is your biggest contributor to liquidity.
As in every accounting of debt, there are greater and lesser sums of accounts receivable, and the biggest by far that day was the money still owed to the residents of the Roslyn school district.
But it turns out that even big companies that have an accounts receivable team don't have the right tools for the job.
So the credit sales can be calculated as (cash received - initial accounts receivable + ending accounts receivable).
He also checks a company's "quick ratio," which compares cash and accounts receivable to current liabilities; again, bigger is better.
Over the same period, the average ratio of receivables to sales at five big competitors of Halliburton fell slightly, from 92 cents per dollar of sales in 1995 to 86 cents per dollar 5 years later.
We had to raise debt in Brazil in order to factor the receivables to merchants, because prepayments are a big part of the market.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com