What was Aplus's amortization of deferred financing fees in 2023?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
improvements | 511 | | 466 | | Equipment | 447 | | 402 | | Total property and equipment | 1,350 | | 1,242 | | Less: accumulated depreciation | (563) | | (497) | | Property and equipment, net | $ 787 | $ | 745 |
15. Interest Expense, net
Components of net interest expense were as follows:
| | Year Ended December 31, | | | | | | |----------------
Source: Item 22 — CONTRACTS (FDD page 68)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, the amortization of deferred financing fees for the year 2023 was $8. This figure reflects the expense recognized during the year related to the systematic allocation of the cost of obtaining financing over the period that the financing is expected to benefit the company.
For a prospective Aplus franchisee, understanding this figure is crucial as it provides insight into the company's financial management and how it handles its debt-related expenses. Amortization of deferred financing fees is a non-cash expense, meaning it doesn't involve an actual outflow of cash during the period. However, it does reduce the company's reported net income.
This information is typically found in the financial statements of a company and is useful for assessing the company's profitability and cash flow generation. Monitoring this figure over time, as well as comparing it to industry benchmarks, can help potential investors evaluate the financial health and stability of Aplus.