gigsi says:"One thing I wonder about, thou' - their balance sheet, pg. 20, has the accounts receivables as an asset instead of a liability. You can't cook an omelette with eggs that you don't have yet."While your statement is true, and Fools generally consider Accounts Receivable to be a Liability rather than an Asset when they are large and/or increasing relative to Revenenues, Kemet is only following the rules of accounting when they put AR in the Assets column. Remember that AR are only a bad thing when they are large or and/or increasing relative to Revenues. This can indicate that the company is having trouble getting its customers to make timely payments. Ideally we want our company to have the power to charge a high price (see Profit Margin) and to demand quick payment (see AR relative to sales and Days Sales Out).
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