Formula
to calculate bad debts ratio:
Bad
Debts Ratio = bad debts / accounts receivable.
Bad
debts ratio definition and explanation:
The bad debts ratio is an overall measure of the
possibility of the business incurring bad debts.
The higher the bad debts ratio, the greater the cost
of extending credit.
The bad debts ratio is included in the the financial
statement ratio analysis spreadsheets highlighted in the
left column, which provide formulas, definitions,
calculation, charts and explanations of each ratio.
The is listed in our efficiency
ratios.
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Spreadsheets to
calculate ratios (includes formulas, definitions,
explanations and charts):
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analysis spreadsheets which are not highlighted in the
left column, to see which other ratios our spreadsheets
calculate, define and explain.
The bad debts ratio
may be included in our
custom 1, 3 or 5 period financial
statement ratio analysis spreadsheet.
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