Stock Analysis on Net
Stock Analysis on Net

AT&T Inc. (NYSE:T)

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 credit loss 499 588 771 1,221 1,235
Accounts receivable, gross 10,788 12,054 18,342 21,436 23,871
Financial Ratio
Allowance as a percentage of accounts receivable, gross1 4.63% 4.88% 4.20% 5.70% 5.17%

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 × Allowance for credit loss ÷ Accounts receivable, gross
= 100 × 499 ÷ 10,788 = 4.63%

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