Coca-Cola Co. (KO)

Trade Accounts Receivable

Coca-Cola records trade accounts receivable at net realizable value. This value includes an appropriate allowance for estimated uncollectible accounts to reflect any loss anticipated on the trade accounts receivable balances and charged to the provision for doubtful accounts. Coca-Cola calculates this allowance based on the history of write-offs, the level of past-due accounts based on the contractual terms of the receivables, and the relationships with, and the economic status of, the bottling partners and customers. Coca-Cola believes the exposure to concentrations of credit risk is limited due to the diverse geographic areas covered by the operations.

A significant portion of Coca-Cola's net operating revenues and corresponding accounts receivable is derived from sales of the products in international markets. Coca-Cola also generates a significant portion of the net operating revenues by selling concentrates and syrups to bottlers in which Coca-Cola has a noncontrolling interest.

Source: Coca-Cola Co., Annual Report

Source: Based on data from Coca-Cola Co. Annual Reports

2017 Calculations

Ratio	Description	The company
Allowance as a percentage of trade accounts receivable, gross	Allowance for doubtful accounts divided by the gross accounts receivable.	Coca-Cola Co.'s allowance as a percentage of trade accounts receivable, gross increased from 2015 to 2016 and from 2016 to 2017.