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

Accounts receivable represents a big portion of revenue for many companies, but as the name implies, these funds are not yet "received." This can therefore be an area of concern.

When accounts receivable becomes a larger percentage of the revenues reported by a company, it indicates lower quality revenues because there is no guarantee that accounts receivable will be paid back in full. Companies with shrinking accounts receivable (relative to revenue) are viewed favorably.

We ran a screen on the 200 largest stocks by market cap for those with positive receivable and revenue trends: increases in quarterly revenue year-over-year outpacing changes in quarterly accounts receivable, and a decrease in quarterly accounts receivable as a percent of quarterly 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 have strong sales trends? Use this list as a starting point for your own analysis.

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

1. EOG Resources, Inc. (NYSE:EOG): Engages in the exploration, development, production, and marketing of natural gas and crude oil primarily in the United States, Canada, the Republic of Trinidad, Tobago, the United Kingdom, and the People's Republic of China. Market cap of $27.47B. MRQ revenue has increased 82.40% ($2,885.74M vs. $1,582.08M y/y) while MRQ accounts receivable has increased 29.44% ($1,277.66M vs. $987.09M y/y). Accounts receivable/current assets has decreased from 64.33% to 34.20%, comparing 3 months ending 2011-09-30 to 3 months ending 2010-09-30. The stock has gained 9.12% over the last year.

2. Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX): Engages in the exploration, mining, and production of mineral resources. Market cap of $37.01B. MRQ revenue has increased 0.83% ($5,195M vs. $5,152M y/y) while MRQ accounts receivable has decreased 31.63% ($1,446M vs. $2,115M y/y). Accounts receivable/current assets has decreased from 23.30% to 13.50%, comparing 3 months ending 2011-09-30 to 3 months ending 2010-09-30. The stock has had a couple of great days, gaining 6.12% over the last week.

3. Caterpillar Inc. (NYSE:CAT): Manufactures and sells construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives worldwide. Market cap of $62.79B. MRQ revenue has increased 41.15% ($15,716M vs. $11,134M y/y) while MRQ accounts receivable has increased 12.90% ($17,306M vs. $15,328M y/y). Accounts receivable/current assets has decreased from 53.64% to 46.95%, comparing 3 months ending 2011-09-30 to 3 months ending 2010-09-30. The stock has had a couple of great days, gaining 7.17% over the last week.

4. Monsanto Co. (NYSE:MON): Provides agricultural products for farmers in the United States and internationally. Market cap of $42.02B. MRQ revenue has increased 32.84% ($2,439M vs. $1,836M y/y) while MRQ accounts receivable has increased 8.0% ($2,632M vs. $2,437M y/y). Accounts receivable/current assets has decreased from 30.55% to 27.04%, comparing 3 months ending 2011-11-30 to 3 months ending 2010-11-30. The stock has had a couple of great days, gaining 12.5% over the last week.

5. Occidental Petroleum Corporation (NYSE:OXY): Operates as an oil and gas exploration and production company primarily in the United States. Market cap of $78.69B. MRQ revenue has increased 26.69% ($6,076M vs. $4,796M y/y) while MRQ accounts receivable has increased 7.82% ($5,678M vs. $5,266M y/y). Accounts receivable/current assets has decreased from 59.02% to 49.91%, comparing 3 months ending 2011-09-30 to 3 months ending 2010-09-30. The stock has gained 2.73% over the last year.

6. Imperial Oil Ltd. (NYSEMKT:IMO): Engages in the exploration, production, and sale of crude oil and natural gas in Canada. Market cap of $38.54B. MRQ revenue has increased 35.79% ($7,945M vs. $5,851M y/y) while MRQ accounts receivable has increased 17.35% ($2,124M vs. $1,810M y/y). Accounts receivable/current assets has decreased from 54.70% to 43.50%, comparing 3 months ending 2011-09-30 to 3 months ending 2010-09-30. The stock has gained 14.97% over the last year.

7. AstraZeneca PLC (NYSE:AZN): Develops, and commercializes prescription medicines for cardiovascular, gastrointestinal, infection, neuroscience, oncology, and respiratory and inflammation diseases worldwide. Market cap of $60.14B. MRQ revenue has increased 3.99% ($8,213M vs. $7,898M y/y) while MRQ accounts receivable has decreased 13.27% ($9,699M vs. $11,183M y/y). Accounts receivable/current assets has decreased from 45.52% to 43.17%, comparing 3 months ending 2011-09-30 to 3 months ending 2010-09-30. The stock has gained 4.96% over the last year.

8. Goldcorp Inc. (NYSE:GG): Engages in the acquisition, exploration, development, and operation of precious metal properties in Canada, the United States, Mexico, and Central and South America. Market cap of $36.23B. MRQ revenue has increased 47.80% ($1,308M vs. $885M y/y) while MRQ accounts receivable has increased 30.80% ($451M vs. $344.8M y/y). Accounts receivable/current assets has decreased from 18.22% to 16.26%, comparing 3 months ending 2011-09-30 to 3 months ending 2010-09-30. The stock has performed poorly over the last month, losing 13.8%.

9. Kimberly-Clark Corporation (NYSE:KMB): Engages in the manufacture and marketing of health care products worldwide. Market cap of $28.66B. MRQ revenue has increased 8.09% ($5,382M vs. $4,979M y/y) while MRQ accounts receivable has decreased 7.49% ($2,434M vs. $2,631M y/y). Accounts receivable/current assets has decreased from 43.19% to 37.22%, comparing 3 months ending 2011-09-30 to 3 months ending 2010-09-30. The stock has gained 20.34% over the last year.

10. Schlumberger Limited (NYSE:SLB): Supplies technology, integrated project management, and information solutions to the oil and gas exploration and production industries worldwide. Market cap of $92.37B. MRQ revenue has increased 25.63% ($10,263M vs. $8,169M y/y) while MRQ accounts receivable has increased 10.38% ($9,493M vs. $8,600M y/y). Accounts receivable/current assets has decreased from 52.29% to 44.65%, comparing 3 months ending 2011-09-30 to 3 months ending 2010-09-30. The stock has lost 14.55% over the last year.

*Accounting data sourced from Google Finance, all other data sourced from Finviz.

Source: 10 Mega-Cap Stocks With Positive Receivable Trends