Stock Analysis on Net

Charter Communications Inc. (NASDAQ:CHTR)

$22.49

This company has been moved to the archive! The financial data has not been updated since February 2, 2024.

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.

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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 doubtful accounts
Accounts receivable, gross
Financial Ratio
Allowance as a percentage of accounts receivable, gross1

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 accounts receivable, gross = 100 × Allowance for doubtful accounts ÷ Accounts receivable, gross
= 100 × ÷ =


The analysis of the financial data for the period from December 31, 2019, to December 31, 2023, reveals several notable trends related to accounts receivable and the allowance for doubtful accounts.

Accounts Receivable, Gross
The gross accounts receivable consistently increased over the five-year period, starting at $2,378 million in 2019 and rising to $3,233 million by the end of 2023. This represents a cumulative growth, indicating an expanding volume of credit extended to customers or an increase in sales transactions on account.
Allowance for Doubtful Accounts
The allowance for doubtful accounts also showed an upward trend, though with some fluctuations. It increased from $151 million in 2019 to $268 million in 2023. Notably, the allowance decreased from 2020 to 2021 before increasing again in the subsequent years, reaching its highest level in 2023.
Allowance as a Percentage of Gross Accounts Receivable
This ratio, which reflects the estimated proportion of uncollectible accounts relative to total accounts receivable, exhibited variability across the years. It increased from 6.35% in 2019 to 8.1% in 2020, then declined to 5.74% in 2021. Following 2021, the percentage rose again, ending at 8.29% in 2023. The fluctuations suggest periodic reassessments of credit risk or changes in collection experience.

In summary, both gross accounts receivable and the allowance for doubtful accounts have increased over the five-year period, with the allowance percentage fluctuating but generally trending upward in the last two years. The rising allowance percentage towards the end may indicate a more cautious stance on credit risk or a response to increased delinquency rates. Overall, the data suggests growth in receivables alongside vigilance in managing credit risk exposure.