Air Products & Chemicals Inc. (NYSE:APD)

This company has been moved to the archive! The financial data has not been updated since August 9, 2021.

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.

Allowance for Doubtful Accounts Receivable

Allowance for Doubtful Accounts Receivable

	Sep 30, 2020	Sep 30, 2019	Sep 30, 2018	Sep 30, 2017	Sep 30, 2016	Sep 30, 2015
Selected Financial Data (US$ in thousands)
Allowance for doubtful accounts	23,900)	48,800)	24,000)	45,800)	22,800)	26,300)
Trade receivables, gross	1,298,700)	1,309,000)	1,231,200)	1,219,800)	1,462,700)	1,432,500)
Financial Ratio
Allowance as a percentage of trade receivables, gross¹	1.84%	3.73%	1.95%	3.75%	1.56%	1.84%

Based on: 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30), 10-K (reporting date: 2015-09-30).

¹ 2020 Calculation
Allowance as a percentage of trade receivables, gross = 100 × Allowance for doubtful accounts ÷ Trade receivables, gross
= 100 × 23,900 ÷ 1,298,700 = 1.84%

Financial ratio	Description	The company
Allowance as a percentage of trade receivables, gross	Allowance for doubtful accounts divided by the gross accounts receivable.	Air Products & Chemicals Inc. allowance as a percentage of trade receivables, gross increased from 2018 to 2019 but then decreased significantly from 2019 to 2020.