Analysis of Bad Debts
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.
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- Cash Flow Statement
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Analysis of Reportable Segments
- Common Stock Valuation Ratios
- Dividend Discount Model (DDM)
- Present Value of Free Cash Flow to Equity (FCFE)
- Debt to Equity since 2005
- Price to Earnings (P/E) since 2005
- Price to Operating Profit (P/OP) since 2005
- Analysis of Debt
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Allowance for Doubtful Accounts Receivable
Based on: 10-K (reporting date: 2024-10-27), 10-K (reporting date: 2023-10-29), 10-K (reporting date: 2022-10-30), 10-K (reporting date: 2021-10-31), 10-K (reporting date: 2020-10-25), 10-K (reporting date: 2019-10-27).
1 2024 Calculation
Allowance as a percentage of accounts receivable, gross = 100 × Allowance for credit losses ÷ Accounts receivable, gross
= 100 × ÷ =
- Allowance for Credit Losses
- The allowance for credit losses remained relatively stable from 2019 to 2023, fluctuating slightly between 29 and 30 million US dollars. Data for 2024 is unavailable, preventing analysis for that year.
- Accounts Receivable, Gross
- There was a significant upward trend in gross accounts receivable from 2019 through 2022, increasing from 2,563 million US dollars to a peak of 6,097 million US dollars. In 2023, there was a notable decline to 5,194 million US dollars, followed by a slight increase to 5,234 million US dollars in 2024.
- Allowance as a Percentage of Accounts Receivable, Gross
- This ratio showed a consistent downward trend from 2019 to 2022, decreasing from 1.17% to 0.48%. In 2023, the percentage rose slightly to 0.56%, indicating a marginal increase in the relative allowance against gross accounts receivable. Data for 2024 is not provided.