Bad Debt Ratio

(Bad + Disputed Debts) / Receivables

The percentage of receivables classified as bad.

  • Indicator of receivables quality for factoring
  • Indicator of adherence to commercial & credit policy in the collection of receivables
  • Indicator of rigor in the collection of receivables
  • Evaluated in relation to the corresponding index of the industry or similar companies

Bad + Disputed Debts with excess Ceiling / Receivables

  • Indicator of adherence to commercial & credit policy in the collection of receivables

Business actions to improve the Index

  • Increase in healthy Sales
  • Reduce bad debts