Stock Analysis on Net
Stock Analysis on Net

Coca-Cola Co. (NYSE:KO)

Analysis of Bad Debts

Microsoft Excel

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

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in millions)
Allowances 506 502 516 516 526
Trade accounts receivable, gross 4,075 3,912 4,003 4,028 3,670
Financial Ratio
Allowance as a percentage of trade accounts receivable, gross1 12.42% 12.83% 12.89% 12.81% 14.33%

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

1 2024 Calculation
Allowance as a percentage of trade accounts receivable, gross = 100 × Allowances ÷ Trade accounts receivable, gross
= 100 × 506 ÷ 4,075 = 12.42%

Financial 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. allowance as a percentage of trade accounts receivable, gross decreased from 2022 to 2023 and from 2023 to 2024.