table_specific

What was the interest expense, net, for Aplus in 2022?

Aplus Franchise · 2024 FDD

Answer 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 interest expense, net, for the year ended December 31, 2022, was $182. This figure represents the company's interest expenses after accounting for any interest income. For a prospective franchisee, understanding the interest expense is crucial as it reflects Aplus's borrowing costs and overall financial health. High-interest expenses could indicate higher debt levels, which might impact the company's profitability and ability to support its franchisees. Conversely, lower interest expenses could suggest better financial management and stability.

Specifically, the interest expense of $182 is calculated by taking the interest expense of $176, subtracting the interest income of $1, and adding the amortization of deferred financing fees of $7. This calculation provides a comprehensive view of Aplus's net interest obligations. Franchisees should consider this figure in conjunction with other financial metrics to assess the company's financial performance and stability.

It is important for potential franchisees to review these figures in the context of Aplus's overall financial statements and to compare them with industry benchmarks. Understanding the components of interest expense, such as the amortization of deferred financing fees, can provide additional insights into the company's financial practices. Prospective franchisees should also inquire about Aplus's debt management strategies and future plans for managing interest expenses to ensure long-term financial health.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.