What was the depreciation and amortization for Americas Best Value Inn in 2023 (Restated)?
Americas_Best_Value_Inn Franchise · 2025 FDDAnswer from 2025 FDD Document
| (dollars in thousands) | |||||
|---|---|---|---|---|---|
| 2024 | 2023 (Restated) | 2022 | |||
| Cash flows from operating activities: | |||||
| Net income (loss) | $ ( 2,913) | $ 1,477 | $ ( 3,186) | ||
| Adjustments to reconcile net loss to cash provided by (used in) operating activities: | |||||
| Depreciation and amortization | 489 | 1,691 | 3,506 |
Source: Item 23 — RECEIPTS (FDD pages 71–223)
What This Means (2025 FDD)
According to the 2025 Franchise Disclosure Document, Americas Best Value Inn's depreciation and amortization expenses for 2023 (Restated) were $3,506,000. This figure reflects the accounting method of allocating the cost of tangible or intangible assets over their useful life. Depreciation applies to tangible assets like property and equipment, while amortization is used for intangible assets such as patents or trademarks.
For a prospective Americas Best Value Inn franchisee, understanding depreciation and amortization is crucial for assessing the financial health and performance of the franchisor. These non-cash expenses can significantly impact the net income reported by the company. Higher depreciation and amortization expenses might indicate substantial investments in assets, which could be a positive sign of growth and development. However, it is also important to evaluate the types of assets being depreciated or amortized and their remaining useful lives.
Franchisees should consider this figure in conjunction with other financial statement items to gain a comprehensive understanding of Americas Best Value Inn's financial position. Comparing the depreciation and amortization expenses over several years can reveal trends in the company's investment strategies and asset management practices. It is also advisable to compare these figures with industry benchmarks to determine whether they are in line with typical practices in the hospitality sector.
It is important to note that this figure is part of the overall cash flow statement and should be analyzed in the context of other cash flow activities, such as operating, investing, and financing activities, to get a complete picture of the company's financial performance. Prospective franchisees should consult with a financial advisor to fully understand the implications of these figures for their investment decision.