3 Semiconductor Stocks With Encouraging Receivables And Inventory Trends
By Kapitall:Are you interested in the growth prospects that the tech sector can offer? If so, here are some ideas on how to dig deeper into the industry. We ran a screen on the semiconductor industry for stocks with strong sales trends relative to both accounts receivable and to inventory. Since accounts receivable is the portion of revenue not yet received, and there is no guarantee the money will ever be received in full, the smaller receivables is the better. That is, companies with lower accounts receivable relative to revenue are thought to have higher quality revenues. We first screened for companies seeing faster growth in revenue than accounts receivable year-over-year. As for inventory, since inventory represents goods not yet sold, we also screened for companies seeing faster growth in revenue than inventory year-over-year, which also indicates growing sales trends. To test for strong liquidity, we also screened for companies seeingComplete Story »
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