Stock Analysis on Net
Stock Analysis on Net

Texas Instruments Inc. (NASDAQ:TXN)

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)
Accounts receivable allowances 16 13 8 11 8
Accounts receivable, gross 1,803 1,908 1,709 1,425 1,082
Financial Ratio
Allowance as a percentage of accounts receivable, gross1 0.89% 0.68% 0.47% 0.77% 0.74%

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 × Accounts receivable allowances ÷ Accounts receivable, gross
= 100 × 16 ÷ 1,803 = 0.89%

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