Stock Analysis on Net

Johnson & Johnson (NYSE:JNJ)

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 29, 2019
Selected Financial Data (US$ in millions)
Allowances for doubtful accounts 166 203 230 293 226
Accounts receivable trade, gross 15,039 16,363 15,513 13,869 14,707
Financial Ratio
Allowance as a percentage of accounts receivable trade, gross1 1.10% 1.24% 1.48% 2.11% 1.54%

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: 2019-12-29).

1 2023 Calculation
Allowance as a percentage of accounts receivable trade, gross = 100 × Allowances for doubtful accounts ÷ Accounts receivable trade, gross
= 100 × 166 ÷ 15,039 = 1.10%

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