Best Buy Co. Inc. (NYSE:BBY)

This company has been moved to the archive! The financial data has not been updated since December 6, 2022.

Analysis of Bad Debts

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 Doubtful Accounts Receivable

	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019	Feb 3, 2018	Jan 28, 2017
Selected Financial Data (US$ in millions)
Allowances for uncollectible receivables	39)	38)	24)	23)	37)	52)
Receivables, gross	1,081)	1,099)	1,173)	1,038)	1,086)	1,399)
Financial Ratio
Allowance as a percentage of receivables, gross¹	3.61%	3.46%	2.05%	2.22%	3.41%	3.72%

Based on: 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28).

¹ 2022 Calculation
Allowance as a percentage of receivables, gross = 100 × Allowances for uncollectible receivables ÷ Receivables, gross
= 100 × 39 ÷ 1,081 = 3.61%

Financial ratio	Description	The company
Allowance as a percentage of receivables, gross	Allowance for doubtful accounts divided by the gross accounts receivable.	Best Buy Co. Inc. allowance as a percentage of receivables, gross increased from 2020 to 2021 and from 2021 to 2022.