Stock Analysis on Net
Stock Analysis on Net

Bristol-Myers Squibb Co. (NYSE:BMY)

Analysis of Bad Debts

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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

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Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Allowance for expected credit loss 18  21  33  43  48 
Trade receivables, gross 7,237  6,497  4,669  4,390  3,822 
Financial Ratio
Allowance as a percentage of trade receivables, gross1 0.25% 0.32% 0.71% 0.98% 1.26%

Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).

1 2020 Calculation
Allowance as a percentage of trade receivables, gross = 100 × Allowance for expected credit loss ÷ Trade receivables, gross
= 100 × 18 ÷ 7,237 = 0.25%

Financial ratio Description The company
Allowance as a percentage of trade receivables, gross Allowance for doubtful accounts divided by the gross accounts receivable. Bristol-Myers Squibb Co. allowance as a percentage of trade receivables, gross decreased from 2018 to 2019 and from 2019 to 2020.