Stock Analysis on Net

Kimberly-Clark Corp. (NYSE:KMB)

$22.49

This company has been moved to the archive! The financial data has not been updated since April 23, 2021.

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.

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Allowance for Doubtful Accounts Receivable

Microsoft Excel
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Allowance for doubtful accounts
Accounts receivable, gross
Financial Ratio
Allowance as a percentage of accounts receivable, gross1

Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).

1 2020 Calculation
Allowance as a percentage of accounts receivable, gross = 100 × Allowance for doubtful accounts ÷ Accounts receivable, gross
= 100 × ÷ =


Allowance for doubtful accounts
The allowance for doubtful accounts demonstrated a decreasing trend from 50 million US dollars in 2016 to 32 million in 2019, followed by a slight increase to 34 million in 2020. This overall decline suggests improved credit risk management or lower expected credit losses during the period, with a marginal uptick in the final year.
Accounts receivable, gross
The gross accounts receivable fluctuated modestly over the years, starting at 2226 million US dollars in 2016, increasing to a peak of 2353 million in 2017, then decreasing to 2200 million in 2018, rising again to 2295 million in 2019, and slightly declining to 2269 million in 2020. The pattern indicates some variability but generally stable receivables levels within a narrow range.
Allowance as a percentage of accounts receivable, gross
This ratio exhibited a downward trajectory from 2.25% in 2016 to 1.39% in 2019, indicating a reduced proportion of receivables being reserved for doubtful accounts. It then slightly increased to 1.5% in 2020. The declining trend suggests a decreasing expectation of credit losses relative to the size of receivables, improving credit quality or collection efficiency, with a minor reversal in the last year.