Accounts Receivable
Money owed for goods or services already sold but not yet collected — booked as sales but not yet in as cash.
In plain terms
In business-to-business dealings it is common to deliver goods first and get paid later. Accounts receivable is that "sold but not yet collected" money.
It is already booked in sales (income statement) but has not yet arrived as cash (in the bank). So it explains the situation where "sales rose but cash did not come in."
What it tells you
It shows the gap between sales and actual cash collection.
If receivables grow faster than sales, it means sales rose but that money has not come in yet, so the cash position can get tight.
Formula
accounts receivable = amounts sold on credit but not yet collected (a current-asset line on the balance sheet)
What high or low means
Growing moderately in proportion to sales is normal.
But if receivables grow much faster than sales, look at whether the company pushed sales out on credit too aggressively, and whether there is collection risk.
If receivables grow fast while sales do not keep up, it can signal sales pulled forward or rising bad-debt risk (Stocklore's context reading flags the divergence between "sales and credit").
Credit practices vary by industry, so read the trend versus sales rather than the absolute amount.
Metrics to read alongside
See it in real stocks
Search US stocks on Stocklore to see Accounts and other financial metrics alongside the sector average.
This explanation is for information and reference only and is not a recommendation to buy or sell any security. Investment decisions and their consequences are your own.