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:
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: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Allowance as a percentage of receivables, gross = 100 × Allowances for credit losses ÷ Receivables, gross
= 100 × ÷ =
- Allowances for credit losses
- The allowances for credit losses demonstrate an increasing trend from 2020 to 2023, rising from 84 million USD to 116 million USD. However, in 2024, there is a notable reduction to 74 million USD, marking a significant decline after several years of growth.
- Receivables, gross
- Gross receivables have steadily increased over the five-year period. Starting at 3,038 million USD in 2020, the figure rises each year, reaching 4,885 million USD by the end of 2024. This consistent growth indicates an expanding credit sales or increasing receivables on the company's balance sheet.
- Allowance as a percentage of receivables, gross
- The allowance as a percentage of gross receivables shows a clear downward trend across the observed years. From 2.76% in 2020, it gradually decreases to 1.51% in 2024. This decline suggests improved collection efficiency or potentially a reassessment of credit risk, resulting in a reduced relative provision despite the increase in total gross receivables.