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, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
Selected Financial Data (US$ in millions)
Allowance for doubtful accounts receivable	16)	17)	16)	24)	29)
Accounts receivable, gross	3,519)	3,556)	2,858)	2,541)	3,477)
Financial Ratio
Allowance as a percentage of accounts receivable, gross¹	0.45%	0.48%	0.56%	0.94%	0.83%

Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).

¹ 2018 Calculation
Allowance as a percentage of accounts receivable, gross = 100 × Allowance for doubtful accounts receivable ÷ Accounts receivable, gross
= 100 × 16 ÷ 3,519 = 0.45%

Financial ratio	Description	The company
Allowance as a percentage of accounts receivable, gross	Allowance for doubtful accounts divided by the gross accounts receivable.	LyondellBasell Industries N.V. allowance as a percentage of accounts receivable, gross decreased from 2016 to 2017 and from 2017 to 2018.

LyondellBasell Industries N.V. (NYSE:LYB)

Analysis of Bad Debts

Allowance for Doubtful Accounts Receivable