Stock Analysis on Net

General Electric Co. (NYSE:GE)

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)
Allowance for credit losses 647 859 1,074 1,164 874
Current receivables, gross 16,113 18,835 16,694 17,855 17,643
Financial Ratio
Allowance as a percentage of current receivables, gross1 4.02% 4.56% 6.43% 6.52% 4.95%

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 current receivables, gross = 100 × Allowance for credit losses ÷ Current receivables, gross
= 100 × 647 ÷ 16,113 = 4.02%

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

Allowance for Credit Losses

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Allowance for credit losses 70 33
Financing receivables, gross 3,106 3,167
Financial Ratio
Allowance as a percentage of financing receivables, gross1 2.25% 1.04%

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 financing receivables, gross = 100 × Allowance for credit losses ÷ Financing receivables, gross
= 100 × 0 ÷ 0 =