Stock Analysis on Net

UnitedHealth Group Inc. (NYSE:UNH)

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)
Receivables allowances 3,084 2,310 1,947 2,037 1,378
Receivables, gross 42,054 32,760 30,029 27,441 22,840
Financial Ratio
Allowance as a percentage of receivables, gross1 7.33% 7.05% 6.48% 7.42% 6.03%

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 × Receivables allowances ÷ Receivables, gross
= 100 × 3,084 ÷ 42,054 = 7.33%

Financial ratio Description The company
Allowance as a percentage of receivables, gross Allowance for doubtful accounts divided by the gross accounts receivable. UnitedHealth Group Inc. allowance as a percentage of receivables, gross increased from 2021 to 2022 and from 2022 to 2023.