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.

Allowance for Doubtful Accounts Receivable

Allowance for Doubtful Accounts Receivable

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Selected Financial Data (US$ in millions)
Allowance for doubtful accounts	55)	48)	39)	18)	15)
Trade accounts receivable, gross	2,915)	2,530)	2,821)	1,067)	1,012)
Financial Ratio
Allowance as a percentage of trade accounts receivable, gross¹	1.89%	1.90%	1.38%	1.69%	1.48%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

¹ 2021 Calculation
Allowance as a percentage of trade accounts receivable, gross = 100 × Allowance for doubtful accounts ÷ Trade accounts receivable, gross
= 100 × 55 ÷ 2,915 = 1.89%

Financial ratio	Description	The company
Allowance as a percentage of trade accounts receivable, gross	Allowance for doubtful accounts divided by the gross accounts receivable.	Fiserv Inc. allowance as a percentage of trade accounts receivable, gross increased from 2019 to 2020 but then slightly decreased from 2020 to 2021.

Fiserv Inc. (NASDAQ:FISV)

Analysis of Bad Debts

Allowance for Doubtful Accounts Receivable