Stock Analysis on Net
Stock Analysis on Net

Accenture PLC (NYSE:ACN)

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
Aug 31, 2024 Aug 31, 2023 Aug 31, 2022 Aug 31, 2021 Aug 31, 2020 Aug 31, 2019
Selected Financial Data (US$ in thousands)
Allowance for credit losses 27,561 26,343 25,786 32,206 40,277 45,538
Receivables and contract assets, gross 13,692,408 12,253,529 11,802,561 9,760,418 7,887,169 8,140,609
Financial Ratio
Allowance as a percentage of receivables and contract assets, gross1 0.20% 0.21% 0.22% 0.33% 0.51% 0.56%

Based on: 10-K (reporting date: 2024-08-31), 10-K (reporting date: 2023-08-31), 10-K (reporting date: 2022-08-31), 10-K (reporting date: 2021-08-31), 10-K (reporting date: 2020-08-31), 10-K (reporting date: 2019-08-31).

1 2024 Calculation
Allowance as a percentage of receivables and contract assets, gross = 100 × Allowance for credit losses ÷ Receivables and contract assets, gross
= 100 × 27,561 ÷ 13,692,408 = 0.20%

Financial ratio Description The company
Allowance as a percentage of receivables and contract assets, gross Allowance for doubtful accounts divided by the gross accounts receivable. Accenture PLC allowance as a percentage of receivables and contract assets, gross decreased from 2022 to 2023 and from 2023 to 2024.