Seeking Alpha
Value, growth, long-term horizon, medium-term horizon
Profile| Send Message|
( followers)  

Accounts receivable is a big part of revenue for many companies, but it is also a potential source of problems.

Receivables represent money earned but not yet collected, so when receivables become a larger part of the revenue reported by a company, it indicates lower-quality revenues. This is because there is no guarantee that the money will be paid back in full.

We ran a screen on stocks from the tech sector with low debt and high liquidity for those that have seen positive trends in their accounts receivable, with increases in quarterly revenue year-over-year outpacing changes in quarterly accounts receivable. We also screened for companies that have seen a decrease in accounts receivable as a percent of current assets year-over-year.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the top six stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.‬

We also created a price-weighted index of the stocks mentioned below, and monitored the performance of the list relative to the S&P 500 index over the last month. (To access a complete analysis of this list's recent performance, click here.)

Do you think these companies are performing well? Use this list as a starting-off point for your own analysis.

List sorted by difference between changes in revenue and accounts receivable.

1. Ultratech, Inc. (NASDAQ:UTEK): Develops, manufactures, and markets photolithography and laser thermal processing equipment. Market cap of $494.72M. Long term debt/equity at 0.0. Current ratio at 6.15, quick ratio at 5.31. MRQ revenue has increased 71.0% ($53.95M vs. $31.55M y/y) while MRQ accounts receivable has increased 12.77% ($32.77M vs. $29.06M y/y). Accounts receivable/current assets has decreased from 12.24% to 10.89%, comparing 3 months ending 2011-07-02 to 3 months ending 2010-07-03. The stock has performed poorly over the last month, losing 16.06%.

2. Maxim Integrated Products Inc. (NASDAQ:MXIM): Designs, develops, manufactures, and markets a range of linear and mixed-signal integrated circuits worldwide. Market cap of $7.20B. Long term debt/equity at 0.12. Current ratio at 4.17, quick ratio at 3.60. MRQ revenue has increased 10.70% ($626.49M vs. $565.96M y/y) while MRQ accounts receivable has decreased 29.54% ($298.12M vs. $423.13M y/y). Accounts receivable/current assets has decreased from 24.79% to 17.25%, comparing 13 weeks ending 2011-06-25 to 13 weeks ending 2010-06-26. The stock has had a couple of great days, gaining 9.65% over the last week.

3. Veeco Instruments Inc. (NASDAQ:VECO): Designs, manufactures, and markets equipment to make high brightness light emitting diodes (HB LEDs), solar panels, hard-disk drives, and other devices. Market cap of $1.36B. Long term debt/equity at 0.0. Current ratio at 3.55, quick ratio at 3.12. MRQ revenue has increased 19.61% ($264.81M vs. $221.39M y/y) while MRQ accounts receivable has decreased 9.04% ($128M vs. $140.72M y/y). Accounts receivable/current assets has decreased from 21.27% to 13.43%, comparing 3 months ending 2011-06-30 to 3 months ending 2010-06-30. The stock is a short squeeze candidate, with a short float at 27.19% (equivalent to 6.22 days of average volume). The stock has lost 6.79% over the last year.

4. SanDisk Corp. (NASDAQ:SNDK): Designs, develops, manufactures, and markets NAND-based flash data storage card products that are used in various consumer electronics products. Market cap of $9.80B. Long term debt/equity at 0.28. Current ratio at 3.81, quick ratio at 3.27. MRQ revenue has increased 16.62% ($1,374.99M vs. $1,179.07M y/y) while MRQ accounts receivable has decreased 7.47% ($469.53M vs. $507.43M y/y). Accounts receivable/current assets has decreased from 14.68% to 12.02%, comparing 3 months ending 2011-07-03 to 3 months ending 2010-07-04. The stock has had a couple of great days, gaining 15.13% over the last week.

5. STEC, Inc. (NASDAQ:STEC): Designs, manufactures, and markets enterprise-class flash solid-state drives (SSDs) for use in high-performance storage and server systems. Market cap of $492.88M. Long term debt/equity at 0.0. Current ratio at 8.49, quick ratio at 6.50. MRQ revenue has increased 34.39% ($82.45M vs. $61.35M y/y) while MRQ accounts receivable has increased 12.07% ($45.58M vs. $40.67M y/y). Accounts receivable/current assets has decreased from 15.61% to 13.31%, comparing 3 months ending 2011-06-30 to 3 months ending 2010-06-30. The stock is a short squeeze candidate, with a short float at 26.25% (equivalent to 5.3 days of average volume). The stock has had a couple of great days, gaining 6.58% over the last week.

6. Varian Semiconductor Equipment Associates Inc. (NASDAQ:VSEA): Designs, manufactures, markets, and services semiconductor processing equipment used in the fabrication of integrated circuits to the semiconductor manufacturers worldwide. Market cap of $4.76B. Long term debt/equity at 0.0. Current ratio at 4.73, quick ratio at 3.73. MRQ revenue has increased 44.22% ($328.44M vs. $227.73M y/y) while MRQ accounts receivable has increased 23.71% ($222.83M vs. $180.13M y/y). Accounts receivable/current assets has decreased from 27.57% to 20.80%, comparing 13 weeks ending 2011-07-01 to 13 weeks ending 2010-07-02. The stock has gained 130.01% over the last year.

7. NVIDIA Corporation (NASDAQ:NVDA): Provides visual computing, high performance computing, and mobile computing solutions that generate interactive graphics on various devices ranging from tablets and smart phones to notebooks and workstations. Market cap of $8.77B. Long term debt/equity at 0.01. Current ratio at 3.45, quick ratio at 3.08. MRQ revenue has increased 25.31% ($1,016.52M vs. $811.21M y/y) while MRQ accounts receivable has increased 6.06% ($419.94M vs. $395.93M y/y). Accounts receivable/current assets has decreased from 14.91% to 12.66%, comparing 13 weeks ending 2011-07-31 to 13 weeks ending 2010-08-01. The stock has had a couple of great days, gaining 10.24% over the last week.

8. Marvell Technology Group Ltd. (NASDAQ:MRVL): Designs, develops, and markets analog, mixed-signal, digital signal processing, and embedded and standalone ARM-based microprocessor integrated circuits. Market cap of $8.83B. Long term debt/equity at 0.0. Current ratio at 5.09, quick ratio at 4.57. MRQ revenue has increased 0.12% ($897.52M vs. $896.47M y/y) while MRQ accounts receivable has decreased 17.32% ($405.76M vs. $490.75M y/y). Accounts receivable/current assets has decreased from 15.42% to 12.69%, comparing 3 months ending 2011-07-30 to 3 months ending 2010-07-31. The stock has had a couple of great days, gaining 13.64% over the last week.

9. FARO Technologies Inc. (NASDAQ:FARO): Designs, develops, manufactures, markets, and supports portable, software driven, 3-D measurement systems used in a range of manufacturing, industrial, building construction, and forensic applications. Market cap of $599.15M. Long term debt/equity at 0.0. Current ratio at 5.04, quick ratio at 4.05. MRQ revenue has increased 30.66% ($59.71M vs. $45.7M y/y) while MRQ accounts receivable has increased 16.36% ($46.95M vs. $40.35M y/y). Accounts receivable/current assets has decreased from 21.67% to 20.49%, comparing 3 months ending 2011-07-02 to 3 months ending 2010-07-03. The stock has gained 96.46% over the last year.

10. Vicor Corp. (NASDAQ:VICR): Engages in the design, development, manufacture, and marketing of modular power components and power systems. Market cap of $408.07M. Long term debt/equity at 0.0. Current ratio at 6.37, quick ratio at 4.80. MRQ revenue has increased 13.98% ($65.4M vs. $57.38M y/y) while MRQ accounts receivable has increased 0.12% ($34.48M vs. $34.44M y/y). Accounts receivable/current assets has decreased from 28.41% to 23.52%, comparing 3 months ending 2011-06-30 to 3 months ending 2010-06-30. The stock is a short squeeze candidate, with a short float at 5.32% (equivalent to 10.71 days of average volume). The stock has lost 29.17% over the last year.

11. Broadcom Corp. (NASDAQ:BRCM): Designs and develops semiconductors for wired and wireless communications. Market cap of $18.31B. Long term debt/equity at 0.12. Current ratio at 3.77, quick ratio at 3.26. MRQ revenue has increased 11.94% ($1,796M vs. $1,604.45M y/y) while MRQ accounts receivable has decreased 1.19% ($680M vs. $688.19M y/y). Accounts receivable/current assets has decreased from 20.64% to 17.10%, comparing 3 months ending 2011-06-30 to 3 months ending 2010-06-30. The stock has lost 2.67% over the last year.

12. Cognex Corporation (NASDAQ:CGNX): Provides machine vision products that capture and analyze visual information to automate tasks, primarily in manufacturing processes. Market cap of $1.21B. Long term debt/equity at 0.0. Current ratio at 6.04, quick ratio at 5.56. MRQ revenue has increased 16.13% ($83.39M vs. $71.81M y/y) while MRQ accounts receivable has increased 3.11% ($42.48M vs. $41.2M y/y). Accounts receivable/current assets has decreased from 18.06% to 12.41%, comparing 3 months ending 2011-07-03 to 3 months ending 2010-07-04. The stock has performed poorly over the last month, losing 10.13%.

13. Computer Programs & Systems Inc. (NASDAQ:CPSI): Designs, develops, markets, installs, and supports computerized information technology systems to small and midsize hospitals in the United States. Market cap of $769.0M. Long term debt/equity at 0.0. Current ratio at 3.20, quick ratio at 3.10. MRQ revenue has increased 29.51% ($48.84M vs. $37.71M y/y) while MRQ accounts receivable has increased 18.99% ($29.51M vs. $24.8M y/y). Accounts receivable/current assets has decreased from 55.64% to 49.66%, comparing 3 months ending 2011-06-30 to 3 months ending 2010-06-30. The stock has gained 72.15% over the last year.

14. ATMI Inc. (NASDAQ:ATMI): Supplies high-performance materials, materials packaging, and materials delivery systems with applications in the semiconductor, flat-panel display, and in the life sciences industries worldwide. Market cap of $537.61M. Long term debt/equity at 0.0. Current ratio at 7.38, quick ratio at 5.76. MRQ revenue has increased 14.32% ($104.03M vs. $91M y/y) while MRQ accounts receivable has increased 3.90% ($58.14M vs. $55.96M y/y). Accounts receivable/current assets has decreased from 20.89% to 18.56%, comparing 3 months ending 2011-06-30 to 3 months ending 2010-06-30. The stock has gained 19.93% over the last year.

15. Semtech Corp. (NASDAQ:SMTC): Engages in the design, development, manufacture, and marketing of analog and mixed-signal semiconductor products. Market cap of $1.50B. Long term debt/equity at 0. Current ratio at 5.78, quick ratio at 5.08. MRQ revenue has increased 15.03% ($130.25M vs. $113.23M y/y) while MRQ accounts receivable has increased 4.67% ($51.3M vs. $49.01M y/y). Accounts receivable/current assets has decreased from 18.32% to 12.61%, comparing 13 weeks ending 2011-07-31 to 13 weeks ending 2010-08-01. The stock has had a couple of great days, gaining 8.77% over the last week.

16. IXYS Corp. (NASDAQ:IXYS): Engages in the development, manufacture, and marketing of power semiconductors, advanced mixed signal integrated circuits (ICs), application specific integrated circuits (ASICs), and systems and radio frequency semiconductors. Market cap of $354.62M. Long term debt/equity at 0.12. Current ratio at 5.46, quick ratio at 3.72. MRQ revenue has increased 19.91% ($101.78M vs. $84.88M y/y) while MRQ accounts receivable has increased 11.86% ($58.19M vs. $52.02M y/y). Accounts receivable/current assets has decreased from 26.76% to 24.50%, comparing 3 months ending 2011-06-30 to 3 months ending 2010-06-30. The stock has gained 24.06% over the last year.

17. Cabot Microelectronics Corp. (NASDAQ:CCMP): Engages in the development, manufacture, and sale of chemical mechanical planarization (NYSE:CMP) consumables to the semiconductor industry. Market cap of $887.73M. Long term debt/equity at 0.0. Current ratio at 8.69, quick ratio at 7.59. MRQ revenue has increased 10.02% ($111.85M vs. $101.66M y/y) while MRQ accounts receivable has increased 2.37% ($56.99M vs. $55.67M y/y). Accounts receivable/current assets has decreased from 14.79% to 13.14%, comparing 3 months ending 2011-06-30 to 3 months ending 2010-06-30. The stock is a short squeeze candidate, with a short float at 14.17% (equivalent to 17.08 days of average volume). The stock has gained 22.86% over the last year.

18. NVE Corp. (NASDAQ:NVEC): Engages in the development and sale of devices that use spintronics, a nanotechnology that relies on electron spin to acquire, store, and transmit information. Market cap of $326.24M. Long term debt/equity at 0.0. Current ratio at 6.10, quick ratio at 5.02. MRQ revenue has increased 13.40% ($8.21M vs. $7.24M y/y) while MRQ accounts receivable has increased 6.92% ($3.4M vs. $3.18M y/y). Accounts receivable/current assets has decreased from 33.94% to 17.81%, comparing 3 months ending 2011-06-30 to 3 months ending 2010-06-30. The stock is a short squeeze candidate, with a short float at 7.47% (equivalent to 8.23 days of average volume). The stock has had a good month, gaining 20.37%.

19. Syntel, Inc. (NASDAQ:SYNT): Provides information technology (NYSE:IT) and knowledge process outsourcing (KPO) services worldwide. Market cap of $1.63B. Long term debt/equity at 0.0. Current ratio at 5.08, quick ratio at 4.84. MRQ revenue has increased 20.16% ($156.99M vs. $130.65M y/y) while MRQ accounts receivable has increased 14.19% ($76.86M vs. $67.31M y/y). Accounts receivable/current assets has decreased from 20.26% to 17.28%, comparing 3 months ending 2011-06-30 to 3 months ending 2010-06-30. It's been a rough couple of days for the stock, losing 9.07% over the last week.

20. Zebra Technologies Corp. (NASDAQ:ZBRA): Offers products and solutions that assist in identifying, tracking, and managing assets, transactions, and people. Market cap of $1.76B. Long term debt/equity at 0.0. Current ratio at 5.47, quick ratio at 4.33. MRQ revenue has increased 12.34% ($245.54M vs. $218.56M y/y) while MRQ accounts receivable has increased 6.46% ($159.78M vs. $150.09M y/y). Accounts receivable/current assets has decreased from 33.85% to 28.14%, comparing 3 months ending 2011-07-02 to 3 months ending 2010-07-03. The stock has gained 3.15% over the last year.

21. Brooks Automation Inc. (NASDAQ:BRKS): Provides automation, vacuum, and instrumentation solutions primarily to the semiconductor manufacturing industry worldwide. Market cap of $578.69M. Long term debt/equity at 0.0. Current ratio at 4.27, quick ratio at 3.23. MRQ revenue has increased 18.72% ($186.14M vs. $156.79M y/y) while MRQ accounts receivable has increased 14.76% ($82.55M vs. $71.93M y/y). Accounts receivable/current assets has decreased from 23.51% to 21.45%, comparing 3 months ending 2011-06-30 to 3 months ending 2010-06-30. The stock has gained 49.49% over the last year.

22. Orbotech Ltd. (NASDAQ:ORBK): Engages in the design, development, manufacture, marketing, and service of yield-enhancing and production solutions for specialized applications in the supply chain of the electronics industry. Market cap of $348.95M. Long term debt/equity at 0.17. Current ratio at 3.90, quick ratio at 3.15. MRQ revenue has increased 5.87% ($153.41M vs. $144.9M y/y) while MRQ accounts receivable has increased 2.83% ($214.57M vs. $208.66M y/y). Accounts receivable/current assets has decreased from 44.14% to 33.54%, comparing 3 months ending 2011-06-30 to 3 months ending 2010-06-30. The stock has performed poorly over the last month, losing 11.49%.

Accounting data sourced from Google Finance; all other data sourced from Finviz.

Source: 22 Low-Debt, Highly Liquid Tech Picks