Stock Analysis on Net
Stock Analysis on Net

Phillips 66 (NYSE:PSX)

This company has been moved to the archive! The financial data has not been updated since February 21, 2020.

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, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Allowances 41 22 29 34 55
Accounts and notes receivable, gross 7,417 5,436 6,453 5,519 4,466
Financial Ratio
Allowance as a percentage of accounts and notes receivable, gross1 0.55% 0.40% 0.45% 0.62% 1.23%

Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

1 2019 Calculation
Allowance as a percentage of accounts and notes receivable, gross = 100 × Allowances ÷ Accounts and notes receivable, gross
= 100 × 41 ÷ 7,417 = 0.55%

Financial ratio Description The company
Allowance as a percentage of accounts and notes receivable, gross Allowance for doubtful accounts divided by the gross accounts receivable. Phillips 66 allowance as a percentage of accounts and notes receivable, gross decreased from 2017 to 2018 but then increased from 2018 to 2019 exceeding 2017 level.