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

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Selected Financial Data (US$ in millions)
Allowance for doubtful accounts	36)	33)	34)	16)	15)
Trade accounts receivable and unbilled services, gross	2,953)	2,584)	2,444)	2,598)	2,409)
Financial Ratio
Allowance as a percentage of trade accounts receivable and unbilled services, gross¹	1.22%	1.28%	1.39%	0.62%	0.62%

Based on: 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), 10-K (reporting date: 2018-12-31).

¹ 2022 Calculation
Allowance as a percentage of trade accounts receivable and unbilled services, gross = 100 × Allowance for doubtful accounts ÷ Trade accounts receivable and unbilled services, gross
= 100 × 36 ÷ 2,953 = 1.22%

Financial ratio	Description	The company
Allowance as a percentage of trade accounts receivable and unbilled services, gross	Allowance for doubtful accounts divided by the gross accounts receivable.	IQVIA Holdings Inc. allowance as a percentage of trade accounts receivable and unbilled services, gross decreased from 2020 to 2021 and from 2021 to 2022.

IQVIA Holdings Inc. (NYSE:IQV)

Analysis of Bad Debts

Allowance for Doubtful Accounts Receivable