Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Lam Research Corp. (NASDAQ:LRCX)

Analysis of Bad Debts

Advanced level

Allowance for doubtful accounts receivable (bad debts) is a contra account which reduce the balance of the company’s 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 LibreOffice Calc
Jun 28, 2020 Jun 30, 2019 Jun 24, 2018 Jun 25, 2017 Jun 26, 2016 Jun 28, 2015
Selected Financial Data (US$ in thousands)
Allowance for doubtful accounts 5,465  5,021  5,343  5,103  5,155  4,890 
Accounts receivable, gross 2,102,564  1,460,543  2,182,279  1,678,501  1,267,300  1,098,472 
Financial Ratio
Allowance as a percentage of accounts receivable, gross1 0.26% 0.34% 0.24% 0.30% 0.41% 0.45%

Based on: 10-K (filing date: 2020-08-18), 10-K (filing date: 2019-08-20), 10-K (filing date: 2018-08-14), 10-K (filing date: 2017-08-15), 10-K (filing date: 2016-08-17), 10-K (filing date: 2015-08-13).

1 2020 Calculation
Allowance as a percentage of accounts receivable, gross = 100 × Allowance for doubtful accounts ÷ Accounts receivable, gross
= 100 × 5,465 ÷ 2,102,564 = 0.26%

Financial ratio Description The company
Allowance as a percentage of accounts receivable, gross Allowance for doubtful accounts divided by the gross accounts receivable. Lam Research Corp.’s allowance as a percentage of accounts receivable, gross increased from 2018 to 2019 but then slightly decreased from 2019 to 2020 not reaching 2018 level.