Stock Analysis on Net

Automatic Data Processing Inc. (NASDAQ:ADP)

This company has been moved to the archive! The financial data has not been updated since April 29, 2022.

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
Jun 30, 2021 Jun 30, 2020 Jun 30, 2019 Jun 30, 2018 Jun 30, 2017 Jun 30, 2016
Selected Financial Data (US$ in thousands)
Allowance for doubtful accounts 79,600 92,500 54,900 51,300 49,600 38,100
Accounts receivable, gross 2,807,000 2,533,800 2,494,200 2,035,500 1,753,200 1,780,900
Financial Ratio
Allowance as a percentage of accounts receivable, gross1 2.84% 3.65% 2.20% 2.52% 2.83% 2.14%

Based on: 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30), 10-K (reporting date: 2017-06-30), 10-K (reporting date: 2016-06-30).

1 2021 Calculation
Allowance as a percentage of accounts receivable, gross = 100 × Allowance for doubtful accounts ÷ Accounts receivable, gross
= 100 × 79,600 ÷ 2,807,000 = 2.84%

Financial ratio Description The company
Allowance as a percentage of accounts receivable, gross Allowance for doubtful accounts divided by the gross accounts receivable. Automatic Data Processing Inc. allowance as a percentage of accounts receivable, gross increased from 2019 to 2020 but then slightly decreased from 2020 to 2021 not reaching 2019 level.