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

NVIDIA Corp. (NASDAQ:NVDA)

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
Jan 31, 2021 Jan 26, 2020 Jan 27, 2019 Jan 28, 2018 Jan 29, 2017 Jan 31, 2016
Selected Financial Data (US$ in millions)
Allowance for doubtful accounts 4  2  2  4  3  2 
Accounts receivable, gross 2,433  1,659  1,426  1,269  829  507 
Financial Ratio
Allowance as a percentage of accounts receivable, gross1 0.16% 0.12% 0.14% 0.32% 0.36% 0.39%

Based on: 10-K (filing date: 2021-02-26), 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-28), 10-K (filing date: 2017-03-01), 10-K (filing date: 2016-03-17).

1 2021 Calculation
Allowance as a percentage of accounts receivable, gross = 100 × Allowance for doubtful accounts ÷ Accounts receivable, gross
= 100 × 4 ÷ 2,433 = 0.16%

Financial ratio Description The company
Allowance as a percentage of accounts receivable, gross Allowance for doubtful accounts divided by the gross accounts receivable. NVIDIA Corp.’s allowance as a percentage of accounts receivable, gross decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.