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 Credit Losses

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Selected Financial Data (US$ in thousands)
Allowances	27,100)	22,400)	20,200)	17,700)	8,300)
Accounts receivable, gross	1,157,300)	964,500)	802,900)	663,200)	653,500)
Financial Ratio
Allowance as a percentage of accounts receivable, gross¹	2.34%	2.32%	2.52%	2.67%	1.27%

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 receivable, gross = 100 × Allowances ÷ Accounts receivable, gross
= 100 × 27,100 ÷ 1,157,300 = 2.34%

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 decreased from 2021 to 2022 but then slightly increased from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Selected Financial Data (US$ in thousands)
Allowance for credit loss	2,700)	3,000)	3,600)	4,400)	1,200)
Investment in sales-type leases, before allowance for credit loss	371,600)	435,000)	392,600)	275,000)	181,800)
Financial Ratio
Allowance as a percentage of investment in sales-type leases, before allowance for credit loss¹	0.73%	0.69%	0.92%	1.60%	0.66%

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 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 × 2,700 ÷ 371,600 = 0.73%

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 decreased from 2021 to 2022 but then slightly increased from 2022 to 2023.

Intuitive Surgical Inc. (NASDAQ:ISRG)

Analysis of Bad Debts

Allowance for Doubtful Accounts Receivable

Allowance for Credit Losses