Analysis of Bad Debts
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.
Paying user area
Try for free
Colgate-Palmolive Co. pages available for free this week:
- Balance Sheet: Assets
- Balance Sheet: Liabilities and Stockholders’ Equity
- Common-Size Income Statement
- Common-Size Balance Sheet: Assets
- Analysis of Profitability Ratios
- Enterprise Value to EBITDA (EV/EBITDA)
- Enterprise Value to FCFF (EV/FCFF)
- Present Value of Free Cash Flow to Equity (FCFE)
- Return on Equity (ROE) since 2005
- Analysis of Debt
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to Colgate-Palmolive Co. for $22.49.
This is a one-time payment. There is no automatic renewal.
We accept:
Allowance for Doubtful Accounts Receivable
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Allowance as a percentage of receivables, gross = 100 × Allowance for doubtful accounts and estimated returns ÷ Receivables, gross
= 100 × ÷ =
- Allowance for Doubtful Accounts and Estimated Returns
- The allowance showed a fluctuating trend over the five-year period. It decreased from 82 million USD in 2018 to 76 million USD in 2019, then increased to 89 million USD in 2020. This was followed by a decline to 78 million USD in 2021 and a further decrease to 70 million USD in 2022, representing an overall reduction compared to the starting point.
- Receivables, Gross
- The gross receivables exhibit variability with a generally upward trajectory toward the end of the period. Starting at 1482 million USD in 2018, receivables increased slightly to 1516 million USD in 2019, declined to 1353 million USD in 2020, then experienced a modest rise to 1375 million USD in 2021. The largest increase occurred in 2022 with receivables reaching 1574 million USD, the highest value recorded in the examined timeframe.
- Allowance as a Percentage of Receivables, Gross
- This ratio fluctuated, reflecting changes in both the allowance for doubtful accounts and gross receivables. The percentage reduced from 5.53% in 2018 to 5.01% in 2019, spiked to 6.58% in 2020, then decreased again to 5.67% in 2021 and further declined to 4.45% in 2022. The trend indicates greater confidence in the collectability of receivables by the end of the period, as less allowance was needed relative to the size of receivables.