I would be aware of the growing receivable number and watch it closely over the next few quarterly reports. The question really is not of the growing number, but why it is growing. Is the number growing because old receivables are not being received AND additional ones are being added, or if the customers are actually making good on the older ones, and the company just has increasing current sales that are still in receivables, as it is an equal portion of sales.
If it is old ones are not being made good, that's very concerning regarding their likelihood they will be received, and also very concerning as that will indicate a poor credit policy for customers that may need to be tightened up. This would also most likely require write offs of receivables at a later date, which is a negative.
Would be nice to research into this and find out. I'm also fairly new to the company and haven't been able to do this research yet.
How do you view on their substantial increase in account receivable in the past 12 months? There is a jump of $110MM for past 12 months and $210MM increase in past 24 months , is that the reason why the stock price is so stagnant?
Disclosure: I have just started a position on CXDC.