Stock Analysis on Net
Stock Analysis on Net

Sherwin-Williams Co. (NYSE:SHW)

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
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in thousands)
Allowance for current expected credit losses 59,600 56,600 48,900 53,500 36,500
Accounts receivable, gross 2,527,500 2,620,200 2,401,300 2,131,600 2,125,400
Financial Ratio
Allowance as a percentage of accounts receivable, gross1 2.36% 2.16% 2.04% 2.51% 1.72%

Based on: 10-K (reporting date: 2023-12-31), 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).

1 2023 Calculation
Allowance as a percentage of accounts receivable, gross = 100 × Allowance for current expected credit losses ÷ Accounts receivable, gross
= 100 × 59,600 ÷ 2,527,500 = 2.36%

Financial ratio Description The company
Allowance as a percentage of accounts receivable, gross Allowance for doubtful accounts divided by the gross accounts receivable. Sherwin-Williams Co. allowance as a percentage of accounts receivable, gross increased from 2021 to 2022 and from 2022 to 2023.