Stock Analysis on Net

Abbott Laboratories (NYSE:ABT)

$24.99

Analysis of Bad Debts

Microsoft Excel

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


We accept:

Visa Mastercard American Express Maestro Discover JCB PayPal Google Pay
Visa Secure Mastercard Identity Check American Express SafeKey

Allowance for Doubtful Accounts Receivable

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in millions)
Allowance for doubtful accounts
Trade receivables, gross
Financial Ratio
Allowance as a percentage of trade receivables, gross1

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 trade receivables, gross = 100 × Allowance for doubtful accounts ÷ Trade receivables, gross
= 100 × ÷ =


Trade receivables, gross
The gross trade receivables exhibit a fluctuating but generally increasing trend over the five-year period. Starting at $6,702 million in 2020, there was a small increase to $6,800 million in 2021, followed by a decline to $6,480 million in 2022. In the subsequent years, the figures rose again to $6,806 million in 2023 and further to $7,172 million in 2024, indicating recovery and growth in receivables toward the end of the period.
Allowance for doubtful accounts
The allowance for doubtful accounts experienced a downward trend overall. It decreased from $288 million in 2020 to $247 million in 2024, with some variability in the interim years, notably dropping from $313 million in 2021 to $241 million by 2023 before a slight increase in 2024. This decline suggests improving credit quality or tighter credit risk management over time.
Allowance as a percentage of trade receivables, gross
The allowance as a percentage of gross trade receivables consistently declined throughout the period, moving from 4.3% in 2020 down to 3.44% in 2024. This trend further supports the observation of an improving credit environment or enhanced collection effectiveness, resulting in a lower proportion of doubtful accounts relative to the receivables base.