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

Boston Scientific Corp. (NYSE:BSX)

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, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Allowance for credit losses 105  74  68  68  73 
Trade accounts receivable, gross 1,637  1,902  1,676  1,616  1,545 
Financial Ratio
Allowance as a percentage of trade accounts receivable, gross1 6.41% 3.89% 4.06% 4.21% 4.72%

Based on: 10-K (filing date: 2021-02-23), 10-K (filing date: 2020-02-25), 10-K (filing date: 2019-02-19), 10-K (filing date: 2018-02-20), 10-K (filing date: 2017-02-23).

1 2020 Calculation
Allowance as a percentage of trade accounts receivable, gross = 100 × Allowance for credit losses ÷ Trade accounts receivable, gross
= 100 × 105 ÷ 1,637 = 6.41%

Financial ratio Description The company
Allowance as a percentage of trade accounts receivable, gross Allowance for doubtful accounts divided by the gross accounts receivable. Boston Scientific Corp.’s allowance as a percentage of trade accounts receivable, gross decreased from 2018 to 2019 but then increased from 2019 to 2020 exceeding 2018 level.