Stock Analysis on Net
Stock Analysis on Net

Emerson Electric Co. (NYSE:EMR)

This company has been moved to the archive! The financial data has not been updated since April 24, 2020.

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
Sep 30, 2019 Sep 30, 2018 Sep 30, 2017 Sep 30, 2016 Sep 30, 2015 Sep 30, 2014
Selected Financial Data (US$ in millions)
Allowances 112 113 91 92 128 114
Receivables, gross 3,097 3,457 3,163 2,793 4,447 5,133
Financial Ratio
Allowance as a percentage of receivables, gross1 3.62% 3.27% 2.88% 3.29% 2.88% 2.22%

Based on: 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30), 10-K (reporting date: 2015-09-30), 10-K (reporting date: 2014-09-30).

1 2019 Calculation
Allowance as a percentage of receivables, gross = 100 × Allowances ÷ Receivables, gross
= 100 × 112 ÷ 3,097 = 3.62%

Financial ratio Description The company
Allowance as a percentage of receivables, gross Allowance for doubtful accounts divided by the gross accounts receivable. Emerson Electric Co. allowance as a percentage of receivables, gross increased from 2017 to 2018 and from 2018 to 2019.