Stock Analysis on Net

Abbott Laboratories (NYSE:ABT)

Analysis of Bad Debts

Microsoft Excel

Allowance for doubtful accounts receivable (bad debts) is a contra account which reduce the balance of the company gross accounts receivable. The relationship between the allowance and the balance in receivables should be relatively constant unless there is a change in the economy overall or a change in customer base.


Allowance for Doubtful Accounts Receivable

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Allowances for doubtful accounts 241 262 313 288 384
Trade receivables, gross 6,806 6,480 6,800 6,702 5,809
Financial Ratio
Allowance as a percentage of trade receivables, gross1 3.54% 4.04% 4.60% 4.30% 6.61%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Allowance as a percentage of trade receivables, gross = 100 × Allowances for doubtful accounts ÷ Trade receivables, gross
= 100 × 241 ÷ 6,806 = 3.54%

Financial ratio Description The company
Allowance as a percentage of trade receivables, gross Allowance for doubtful accounts divided by the gross accounts receivable. Abbott Laboratories allowance as a percentage of trade receivables, gross decreased from 2021 to 2022 and from 2022 to 2023.