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Simple English definitions for legal terms

bad-debt loss ratio

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A quick definition of bad-debt loss ratio:

Bad-Debt Loss Ratio: The bad-debt loss ratio is a measure of how much money a business cannot collect from its customers compared to the total amount of money owed to the business. It helps businesses understand how much money they are losing due to customers not paying their bills.

A more thorough explanation:

Definition: The bad-debt loss ratio is a financial metric that measures the percentage of uncollectible debt to a business's total receivables. It is calculated by dividing the amount of bad debt by the total amount of accounts receivable.

Example: Let's say a company has $100,000 in accounts receivable, but $5,000 of that is considered bad debt that is unlikely to be collected. The bad-debt loss ratio would be 5%, calculated as follows:

Bad-Debt Loss Ratio = (Bad Debt / Total Accounts Receivable) x 100%

Bad-Debt Loss Ratio = ($5,000 / $100,000) x 100%

Bad-Debt Loss Ratio = 5%

This means that for every dollar the company is owed, it can expect to lose 5 cents due to bad debt.

Explanation: The bad-debt loss ratio is an important metric for businesses to track because it helps them understand how much of their accounts receivable they are likely to collect. A high bad-debt loss ratio can indicate that a company needs to improve its credit policies or collection procedures. On the other hand, a low bad-debt loss ratio can indicate that a company has effective credit policies and collection procedures in place.

bad-conduct discharge | bad-debt reserve

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medicine is a scam
join the ethically ambiguous legal field instead
Dkk
18:57
I want to meet an attorney that defends clients who run into flat earth problems. I want an attorney that knows and believes in flat earth theory.
19:05
i want a flat earther for president. i want a guy who posts on 4chan for president. i want someone who mogs for president.
Dkk
19:18
Exactly. My version of that awful poem.
Dkk
19:19
I can accept a president with maybe one or two of the poems traits hut good God, all of them??? No ty.
windyMagician
19:20
president who respects sex is crazy
windyMagician
19:20
we had bill clinton already
Dkk
19:21
Bill Clinton, first and last black president
windyMagician
19:23
I want to go running but my leg feels weird
windyMagician
19:23
it doesn't hurt its just tingly
Dkk
19:26
It needs more alcohol. You tingle when your nerves need watering.
19:27
try stretching it maybe to see what's up
windyMagician
19:27
stretches make me think it's just soreness
windyMagician
19:27
I'm sober lol
Dkk
19:38
Anyone else get the google notification that your LSD password has been compromised lol. LSD got hacked.
20:48
what.jpg @Dkk
CynicalOops
21:03
You think you just fell out of a coconut tree?
jackfrost11770
21:10
nope dk
CynicalOops
22:37
Calvinamala Harris
jackfrost11770
23:16
should i start using letterboxed again
Dkk
23:25
@jackfrost11770: if you want but like it aint for me
dk do u ever eat at bk
Dkk
23:48
@chickenburgahfart: I would do that in the Army if really desperate for food or if I had to work through lunch. One of the few fast food places I go to.
bk so slept on
Dkk
0:23
I will take In N Out everyday over it when I can though.
texaslawhopefully
1:22
In N Out is not only the best fast food place, but the prices too are fantastic
Dkk
1:27
Indeed, indeed.
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