Assessing credit risk on the sales side and managing the accounts receivable asset on the cash side combine to form one of the most important functions of business. With information gathered from the top companies and credit practitioners, CreditPulse will provide indepth coverage, analysis and perspective on key topics, methods and trends in credit and collections management. Success in credit and collections is less about trickery and more about the fundamentals of risk assessment, diplomacy, discipline and good judgment. Bad Debt Allowance Benchmark is 4.1%
Oil & gas and mining & quarrying are among the industries with the lowest bad debt allowances whereas home health care, education & training and publishing are the industries with the highest.
The national public-company bad debt allowance benchmark is 4.1% according to the latest figures from the Credit Standards Index (CSI), a comprehensive ranking of 2,036 public companies representing 72 industries. The index is researched and published annually by CreditPulse, an online credit and accounting trade journal. Companies listed in the CSI must have a market capitalization of $100 million (as of 2005) and an accounts receivable that is at least 6% of total revenue.
The DSO Benchmark
