Kraft Heinz Co. (NASDAQ:KHC)

This company has been moved to the archive! The financial data has not been updated since July 31, 2020.

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 28, 2019	Dec 29, 2018	Dec 30, 2017	Dec 31, 2016	Dec 31, 2015
Selected Financial Data (US$ in millions)
Allowances related to trade accounts receivable	33)	24)	23)	20)	32)
Trade receivables, gross	2,006)	2,153)	944)	789)	903)
Financial Ratio
Allowance as a percentage of trade receivables, gross¹	1.65%	1.11%	2.44%	2.53%	3.54%

Based on: 10-K (reporting date: 2019-12-28), 10-K (reporting date: 2018-12-29), 10-K (reporting date: 2017-12-30), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

¹ 2019 Calculation
Allowance as a percentage of trade receivables, gross = 100 × Allowances related to trade accounts receivable ÷ Trade receivables, gross
= 100 × 33 ÷ 2,006 = 1.65%

Financial ratio	Description	The company
Allowance as a percentage of trade receivables, gross	Allowance for doubtful accounts divided by the gross accounts receivable.	Kraft Heinz Co. allowance as a percentage of trade receivables, gross decreased from 2017 to 2018 but then slightly increased from 2018 to 2019.