Philip Morris International Inc. (NYSE:PM)

This company has been moved to the archive! The financial data has not been updated since July 27, 2023.

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.

Allowance for Doubtful Accounts Receivable

Allowance for Doubtful Accounts Receivable

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Selected Financial Data (US$ in millions)
Allowances	42)	70)	23)	20)	25)
Trade receivables, gross	3,892)	3,193)	2,928)	3,100)	2,975)
Financial Ratio
Allowance as a percentage of trade receivables, gross¹	1.08%	2.19%	0.79%	0.65%	0.84%

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 trade receivables, gross = 100 × Allowances ÷ Trade receivables, gross
= 100 × 42 ÷ 3,892 = 1.08%

Financial ratio	Description	The company
Allowance as a percentage of trade receivables, gross	Allowance for doubtful accounts divided by the gross accounts receivable.	Philip Morris International Inc. allowance as a percentage of trade receivables, gross increased from 2020 to 2021 but then slightly decreased from 2021 to 2022 not reaching 2020 level.