Amazon.com Inc. (NASDAQ:AMZN)

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, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Selected Financial Data (US$ in millions)
Allowance for doubtful accounts	2,000)	1,700)	1,400)	1,100)	1,100)
Accounts receivable, gross	51,300)	48,600)	36,200)	27,600)	21,081)
Financial Ratio
Allowance as a percentage of accounts receivable, gross¹	3.90%	3.50%	3.87%	3.99%	5.22%

Based on: 10-K (reporting date: 2024-12-31), 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).

¹ 2024 Calculation
Allowance as a percentage of accounts receivable, gross = 100 × Allowance for doubtful accounts ÷ Accounts receivable, gross
= 100 × 2,000 ÷ 51,300 = 3.90%

Financial ratio	Description	The company
Allowance as a percentage of accounts receivable, gross	Allowance for doubtful accounts divided by the gross accounts receivable.	Amazon.com Inc. allowance as a percentage of accounts receivable, gross decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level.