AutoZone Inc. (NYSE:AZO)

This company has been moved to the archive! The financial data has not been updated since December 18, 2023.

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

	Aug 26, 2023	Aug 27, 2022	Aug 28, 2021	Aug 29, 2020	Aug 31, 2019	Aug 25, 2018
Selected Financial Data (US$ in thousands)
Allowance for credit losses	7,700)	9,500)	11,400)	10,000)	8,500)	6,100)
Accounts receivable, gross	528,085)	514,386)	389,792)	374,774)	317,495)	264,236)
Financial Ratio
Allowance as a percentage of accounts receivable, gross¹	1.46%	1.85%	2.92%	2.67%	2.68%	2.31%

Based on: 10-K (reporting date: 2023-08-26), 10-K (reporting date: 2022-08-27), 10-K (reporting date: 2021-08-28), 10-K (reporting date: 2020-08-29), 10-K (reporting date: 2019-08-31), 10-K (reporting date: 2018-08-25).

¹ 2023 Calculation
Allowance as a percentage of accounts receivable, gross = 100 × Allowance for credit losses ÷ Accounts receivable, gross
= 100 × 7,700 ÷ 528,085 = 1.46%

Financial ratio	Description	The company
Allowance as a percentage of accounts receivable, gross	Allowance for doubtful accounts divided by the gross accounts receivable.	AutoZone Inc. allowance as a percentage of accounts receivable, gross decreased from 2021 to 2022 and from 2022 to 2023.