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

AT&T Inc. (NYSE:T)

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
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Allowances for doubtful accounts 1,235  907  663  661  704 
Accounts receivable, gross 23,871  27,379  17,185  17,455  17,236 
Financial Ratio
Allowance as a percentage of accounts receivable, gross1 5.17% 3.31% 3.86% 3.79% 4.08%

Based on: 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-20), 10-K (filing date: 2018-02-20), 10-K (filing date: 2017-02-17), 10-K (filing date: 2016-02-18).

1 2019 Calculation
Allowance as a percentage of accounts receivable, gross = 100 × Allowances for doubtful accounts ÷ Accounts receivable, gross
= 100 × 1,235 ÷ 23,871 = 5.17%

Financial ratio Description The company
Allowance as a percentage of accounts receivable, gross Allowance for doubtful accounts divided by the gross accounts receivable. AT&T Inc.’s allowance as a percentage of accounts receivable, gross decreased from 2017 to 2018 but then increased from 2018 to 2019 exceeding 2017 level.