Stock Analysis on Net
Stock Analysis on Net

Edwards Lifesciences Corp. (NYSE:EW)

This company has been moved to the archive! The financial data has not been updated since February 14, 2022.

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

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Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in thousands)
Allowance for doubtful accounts 9,300 9,600 8,700 8,900 8,500
Trade accounts receivable 591,500 524,200 552,300 465,800 430,100
Financial Ratio
Allowance as a percentage of trade accounts receivable1 1.57% 1.83% 1.58% 1.91% 1.98%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Allowance as a percentage of trade accounts receivable = 100 × Allowance for doubtful accounts ÷ Trade accounts receivable
= 100 × 9,300 ÷ 591,500 = 1.57%

Financial ratio Description The company
Allowance as a percentage of trade accounts receivable Allowance for doubtful accounts divided by the gross accounts receivable. Edwards Lifesciences Corp. allowance as a percentage of trade accounts receivable increased from 2019 to 2020 but then decreased significantly from 2020 to 2021.