Stock Analysis on Net

Cummins Inc. (NYSE:CMI)

This company has been moved to the archive! The financial data has not been updated since May 2, 2024.

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)
Allowance for doubtful account 75 78 33 39 19
Accounts and notes receivable, gross 5,658 5,280 4,023 3,859 3,689
Financial Ratio
Allowance as a percentage of accounts and notes receivable, gross1 1.33% 1.48% 0.82% 1.01% 0.52%

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 accounts and notes receivable, gross = 100 × Allowance for doubtful account ÷ Accounts and notes receivable, gross
= 100 × 75 ÷ 5,658 = 1.33%

Financial ratio Description The company
Allowance as a percentage of accounts and notes receivable, gross Allowance for doubtful accounts divided by the gross accounts receivable. Cummins Inc. allowance as a percentage of accounts and notes receivable, gross increased from 2021 to 2022 but then slightly decreased from 2022 to 2023.