Kraft Foods Group Inc. (NASDAQ:KRFT)

This company has been moved to the archive! The financial data has not been updated since April 28, 2015.

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 27, 2014	Dec 28, 2013	Dec 29, 2012
Selected Financial Data (US$ in millions)
Allowances related to accounts receivable	21)	26)	28)
Receivables, gross	1,101)	1,074)	1,117)
Financial Ratio
Allowance as a percentage of receivables, gross¹	1.91%	2.42%	2.51%

Based on: 10-K (reporting date: 2014-12-27), 10-K (reporting date: 2013-12-28), 10-K (reporting date: 2012-12-29).

¹ 2014 Calculation
Allowance as a percentage of receivables, gross = 100 × Allowances related to accounts receivable ÷ Receivables, gross
= 100 × 21 ÷ 1,101 = 1.91%

Financial ratio	Description	The company
Allowance as a percentage of receivables, gross	Allowance for doubtful accounts divided by the gross accounts receivable.	Kraft Foods Group Inc. allowance as a percentage of receivables, gross decreased from 2012 to 2013 and from 2013 to 2014.