What is the trend in total current assets for 1 800 Packouts between 2023 and 2024?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
opinion on the effectiveness of the Company'sinternal control. Accordingly, no such opinion is expressed.
- Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
- Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company's ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit finding
Source: Item 23 — RECEIPT (FDD pages 67–238)
What This Means (2025 FDD)
According to 1 800 Packouts' 2025 Franchise Disclosure Document, the company's total current assets increased between 2023 and 2024. In 2023, the total current assets were $8,781,085, and in 2024, they rose to $14,214,643. This represents an increase of $5,433,558 year-over-year.
This increase in current assets could indicate several positive developments for 1 800 Packouts. It may reflect higher sales, improved collections of accounts receivable, or better management of inventory and other liquid assets. For a prospective franchisee, this trend suggests that the business is becoming more liquid and financially stable, which can reduce the risk of investing in the franchise.
However, it's important to consider the composition of current assets. A significant portion of the increase comes from cash, which rose from $1,455,349 in 2023 to $3,690,691 in 2024, and accounts receivable, which increased from $3,565,178 to $6,102,611. While increased cash is generally positive, a large increase in accounts receivable could also indicate potential issues with collecting payments from customers. A potential franchisee should investigate the reasons behind these changes to fully understand the financial health of 1 800 Packouts.
Overall, the increase in total current assets is a positive sign, but further analysis of the individual components is necessary to assess the true financial implications for potential franchisees.