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- 2011-7-11
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- 2013-9-12
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4#
发表于 2011-7-11 17:45
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This is called "Securitization of Receivables" or AR. Ideally, a co wants to sell AR to a 3rd party without recourse because there is no way that the 3rd party can knock on your door for non payment from one of the co's. An analyst can find this info in the footnotes and if the sale of the credit risk is done with recourse, as in this case, the analyst should reverse the transaction and decrease cash and increase AR (basically reversing what the sale did) because this sale is not a sustainable increase in cash. This transaction should be be treated like a loan (ie increase in debt). If it was without recourse then there would not be an increase in debt and the increase in cash and decrease in AR would stand alone on its own merit.
This activity might warrant a closer analysis of the co's liquidity. |
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