Las Vegas Sands Corp. (NYSE:LVS)

An analysis of the credit loss provisions and accounts receivable from 2018 to 2022 reveals a significant shift in the credit risk profile, characterized by a substantial contraction in gross receivables and a corresponding increase in the allowance for doubtful accounts.

Gross Accounts Receivable Trends

Gross accounts receivable peaked in 2019 at US$ 1,126 million before experiencing a sharp decline. By 2021, the balance fell to US$ 434 million, representing a reduction of approximately 61.5% from its 2019 peak. A marginal recovery occurred in 2022, with the balance increasing to US$ 484 million.

Provision for Credit Losses

The annual provision for credit losses remained relatively stable between 2018 and 2020, fluctuating between US$ 282 million and US$ 324 million. A consistent downward trend was established thereafter, with the provision decreasing to US$ 232 million in 2021 and reaching its lowest point of US$ 217 million in 2022.

Allowance as a Percentage of Gross Receivables

The allowance ratio indicates a dramatic increase in the perceived risk of non-payment starting in 2020. The ratio rose from 25.04% in 2019 to 48.16% in 2020, eventually peaking at 53.46% in 2021. Although the ratio moderated to 44.83% in 2022, it remains substantially higher than the levels observed in 2018 and 2019, suggesting a more conservative approach to receivable valuation and a higher expectation of credit losses relative to the total outstanding balance.