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

Accenture PLC (NYSE:ACN)

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
Aug 31, 2020 Aug 31, 2019 Aug 31, 2018 Aug 31, 2017 Aug 31, 2016 Aug 31, 2015
Selected Financial Data (US$ in thousands)
Allowances for client receivables 40,277  45,538  49,913  74,450  79,440  70,165 
Receivables, gross 7,232,387  7,512,876  5,046,367  4,643,664  4,151,620  3,911,085 
Financial Ratio
Allowance as a percentage of receivables, gross1 0.56% 0.61% 0.99% 1.60% 1.91% 1.79%

Based on: 10-K (filing date: 2020-10-22), 10-K (filing date: 2019-10-29), 10-K (filing date: 2018-10-24), 10-K (filing date: 2017-10-26), 10-K (filing date: 2016-10-28), 10-K (filing date: 2015-10-30).

1 2020 Calculation
Allowance as a percentage of receivables, gross = 100 × Allowances for client receivables ÷ Receivables, gross
= 100 × 40,277 ÷ 7,232,387 = 0.56%

Financial ratio Description The company
Allowance as a percentage of receivables, gross Allowance for doubtful accounts divided by the gross accounts receivable. Accenture PLC’s allowance as a percentage of receivables, gross decreased from 2018 to 2019 and from 2019 to 2020.