Stock Analysis on Net

Intuitive Surgical Inc. (NASDAQ:ISRG)

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, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in thousands)
Allowances 30,700 27,100 22,400 20,200 17,700
Accounts receivable, gross 1,256,100 1,157,300 964,500 802,900 663,200
Financial Ratio
Allowance as a percentage of accounts receivable, gross1 2.44% 2.34% 2.32% 2.52% 2.67%

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 × Allowances ÷ Accounts receivable, gross
= 100 × 30,700 ÷ 1,256,100 = 2.44%

Financial ratio Description The company
Allowance as a percentage of accounts receivable, gross Allowance for doubtful accounts divided by the gross accounts receivable. Intuitive Surgical Inc. allowance as a percentage of accounts receivable, gross increased from 2022 to 2023 and from 2023 to 2024.

Allowance for Credit Losses

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in thousands)
Allowance for credit loss 2,600 2,700 3,000 3,600 4,400
Investment in sales-type leases, before allowance for credit loss 379,500 371,600 435,000 392,600 275,000
Financial Ratio
Allowance as a percentage of investment in sales-type leases, before allowance for credit loss1 0.69% 0.73% 0.69% 0.92% 1.60%

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 investment in sales-type leases, before allowance for credit loss = 100 × Allowance for credit loss ÷ Investment in sales-type leases, before allowance for credit loss
= 100 × 2,600 ÷ 379,500 = 0.69%

Financial ratio Description The company
Allowance as a percentage of investment in sales-type leases, before allowance for credit loss Allowance for credit losses divided by the gross financing receivable. Intuitive Surgical Inc. allowance as a percentage of investment in sales-type leases, before allowance for credit loss increased from 2022 to 2023 but then decreased significantly from 2023 to 2024.