David Wolf

Focus Media: Will Massive Accounts Receivable Lead to a Future Write-Down?

The other factor that bears examining when comparing AR numbers among FMCN and its peers is the nature of FMCN's client portfolio. As a rule, large Chinese enterprises tend to pay advertising and other marketing fees somewhat more slowly and less systematically than their MNC peers.

If FMCN's clientele are skewed heavily toward the domestic side, average AR aging will be considerably longer than peer companies whose customers are primarily MNCs. That is not something they're likely to be talking about, so it would be a good question for their next conference call.