Paying users zone. Data is covered by 
.
Get to Caterpillar Inc. for $15.99, or
get to whole website for at least 3 months from $49.99.
Analysis of Bad Debts
Difficulty: Advanced
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 Credit Losses
Based on: 10-K (filing date: 2018-02-15), 10-K (filing date: 2017-02-15), 10-K (filing date: 2016-02-16), 10-K (filing date: 2015-02-17), 10-K (filing date: 2014-02-18).
2017 Calculations
1 Allowance as a percentage of finance receivables, gross = 100 × Allowance for credit losses ÷ Finance receivables, gross
= 100 × ÷ =
| Ratio | Description | The company |
|---|---|---|
| Allowance as a percentage of finance receivables, gross | Allowance for credit losses divided by the gross financing receivable. | Caterpillar Inc.'s allowance as a percentage of finance receivables, gross increased from 2015 to 2016 and from 2016 to 2017. |
