Wonder Auto Technology, Inc. (fka WATG)

[martych]

Any thoughts why the receibles are growing much faster than revenue?

I've had WATG on my watch list for a while and thought I'd start doing some DD. The first thing the jumped out was the growth in A/R over past 3 quarters. In dec-09 f/s, A/R was $87.5m vs revenue os $62.4m of a coverage rate of 1.4x In sep-10 A/R was $167.9m vs revenue of $78.8m or coverage of 2.13x. That's about a 50% increase in relative A/R which is pretty significant. I also looked at Sept-09 to see if it was seasonality but that ratio was AR of $81.2 vs Rev of $58.96 or 1.38x.

Has anyone researched this and found the driver of this increase?
TIA