Avon Products Struggles with Bad Debt, Poor Cash Flow
Ranked near the bottom of the Credit Standards Index (CSI), Avon Products has made a practice in recent years of knocking on the wrong doors. "So totally screwed up in so many ways."
In 2011, Avon Products, Inc., a $11.3 billion cosmetics company based in New York City, wrote-off $257 million of its accounts receivable or approximately 29 percent of its year-end balance sheet figure of $761.5 million, one of the highest percentages ever documented by the Credit Standards Index (CSI). Avon essentially wrote-off almost a third of its accounts receivable as uncollectible.