Asset-based lenders (those that factor receivables and the like) are game, too.
He turns down distressed sellers in favor of firms with rising earnings and cash flow from operations (essentially, net income plus depreciation plus cash-generating changes in things like receivables).
Although receivables turnover, like all of these ratios, is highly dependent on the industry you are in (a good ratio for the biotech industry may be an awful ratio for General Motors, and vice versa), you can still get an idea of what's going on in the company by using it.
For simplicity, we have ignored working capital fluctuations from receivables, payables and the like.
They give you a look into how well the company is managing things like its inventory levels, the accounts receivable on its books, and the like.
It offers asset-backed lending, taking assets like accounts receivable as collateral.
Up until this year John Delaney's CapitalSource of Chevy Chase, Md., public since 2003, earned a nice return making hundreds of loans, secured by assets like accounts receivable, to small businesses, many of them in health care.
They could be copies of invoices, agreements or contracts, statements from outside parties (like bank statements) or copies of supporting reports from other systems - like accounts receivable.
Issuance of ABSs (securities underpinned by car-loan receivables, credit-card debt and the like) are at double their 2010 nadir.
Notably, total company assets (including things like inventory, accounts receivable, and property) now total $273 billion.
