Time Warner Inc. (NYSE:TWX)

This company has been moved to the archive! The financial data has not been updated since April 26, 2018.

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, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014	Dec 31, 2013
Selected Financial Data (US$ in millions)
Allowance for doubtful accounts	162)	193)	180)	152)	261)
Receivables, gross	9,563)	8,892)	7,591)	7,872)	8,129)
Financial Ratio
Allowance as a percentage of receivables, gross¹	1.69%	2.17%	2.37%	1.93%	3.21%

Based on: 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31).

¹ 2017 Calculation
Allowance as a percentage of receivables, gross = 100 × Allowance for doubtful accounts ÷ Receivables, gross
= 100 × 162 ÷ 9,563 = 1.69%

Financial ratio	Description	The company
Allowance as a percentage of receivables, gross	Allowance for doubtful accounts divided by the gross accounts receivable.	Time Warner Inc. allowance as a percentage of receivables, gross decreased from 2015 to 2016 and from 2016 to 2017.