Stock Analysis on Net

Ford Motor Co. (NYSE:F)

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, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Allowances for doubtful receivables 69 93 47 57 49
Receivables, gross 15,670 15,822 11,417 10,050 9,286
Financial Ratio
Allowance as a percentage of receivables, gross1 0.44% 0.59% 0.41% 0.57% 0.53%

Based on: 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), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Allowance as a percentage of receivables, gross = 100 × Allowances for doubtful receivables ÷ Receivables, gross
= 100 × 69 ÷ 15,670 = 0.44%

Financial ratio Description The company
Allowance as a percentage of receivables, gross Allowance for doubtful accounts divided by the gross accounts receivable. Ford Motor Co. allowance as a percentage of receivables, gross increased from 2021 to 2022 but then slightly decreased from 2022 to 2023 not reaching 2021 level.

Allowance for Credit Losses

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Allowance for credit losses 882 845 925 1,305 513
Recorded investment in finance receivables 102,957 89,468 84,724 98,983 107,867
Financial Ratio
Allowance as a percentage of recorded investment in finance receivables1 0.86% 0.94% 1.09% 1.32% 0.48%

Based on: 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), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Allowance as a percentage of recorded investment in finance receivables = 100 × Allowance for credit losses ÷ Recorded investment in finance receivables
= 100 × 882 ÷ 102,957 = 0.86%

Financial ratio Description The company
Allowance as a percentage of recorded investment in finance receivables Allowance for credit losses divided by the gross financing receivable. Ford Motor Co. allowance as a percentage of recorded investment in finance receivables decreased from 2021 to 2022 and from 2022 to 2023.