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.
Paying user area
Try for free
Mondelēz International Inc. pages available for free this week:
- Balance Sheet: Liabilities and Stockholders’ Equity
- Cash Flow Statement
- Common-Size Income Statement
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Enterprise Value to EBITDA (EV/EBITDA)
- Present Value of Free Cash Flow to Equity (FCFE)
- Debt to Equity since 2005
- Price to Earnings (P/E) since 2005
- Price to Book Value (P/BV) since 2005
- Analysis of Debt
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to Mondelēz International Inc. for $24.99.
This is a one-time payment. There is no automatic renewal.
We accept:
Allowance for Doubtful Accounts Receivable
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Allowance as a percentage of receivables, gross = 100 × Allowances for credit losses ÷ Receivables, gross
= 100 × ÷ =
The allowances for credit losses exhibited an initial increase followed by a substantial decline over the observed period. Gross receivables consistently increased throughout the period, though the rate of increase slowed in later years. Consequently, the allowance for doubtful accounts as a percentage of gross receivables demonstrated a decreasing trend.
- Allowances for Credit Losses (US$ in millions)
- The allowances for credit losses increased from US$86 million in 2021 to US$116 million in 2023, representing a cumulative increase of 34.9%. However, a significant decrease was then observed, falling to US$70 million by 2025. This represents a 40% decline from the 2023 peak.
- Gross Receivables (US$ in millions)
- Gross receivables increased steadily from US$3,274 million in 2021 to US$4,928 million in 2025. The largest year-over-year increase occurred between 2021 and 2022 (22.5%). The rate of growth slowed in subsequent years, with a 4.3% increase between 2024 and 2025.
- Allowance as a Percentage of Gross Receivables
- This ratio began at 2.63% in 2021 and decreased to 2.51% in 2023. A more pronounced decline occurred in the final two years, reaching 1.42% in 2025. This indicates that the allowance for credit losses is becoming a smaller proportion of the total outstanding receivables.
The decrease in the allowance percentage, despite increasing receivables, suggests a potential shift in credit risk assessment or collection practices. The substantial reduction in the allowance balance in 2024 and 2025 warrants further investigation to determine the underlying reasons, such as improved collection efficiency, changes in customer creditworthiness, or a more conservative approach to recognizing potential bad debts.