Note: Since February 2015, I have been a contributing author at Investopedia.com. While some of the articles I write for Investopedia don’t overlap with the content focus of Vancouver Value Investing, others do. As such, I will occasionally post synopses of my Investopedia articles, with links to the full versions. Happy investing!

In studying financial statements, investors often focus on revenues, net income, and earnings per share. Although investigating a business’s revenues and profits is a good way to get a picture of its overall health, analyzing the accounts receivable allows you to go a step deeper in your analysis.