What was the net value of Aplus's inventories as of December 31, 2022?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
osts, by performing independent market research and analyses.
/s/ GRANT THORNTON LLP
We have served as the Partnership's auditor since 2015.
Dallas, Texas February 16, 2024
SUNOCO LP CONSOLIDATED BALANCE SHEETS
(Dollars in millions)
| December 31, 2023 | December 31, 2022 | |
|---|---|---|
| ASSETS | ||
| Current assets: | ||
| Cash and cash equivalents | $ 29 | $ 82 |
| Accounts receivable, net | 856 | 890 |
| Accounts receivable from affiliates | 20 | 15 |
| Inventories, net | 889 | 821 |
| Other current assets | 133 | 175 |
| Total current assets | 1,927 | 1,983 |
| Property and equipment | 2,970 | 2,796 |
| Accumulated depreciation | (1,134) | (1,036) |
| Property and equipment, net | 1,836 | 1,760 |
| Other assets: | ||
| Operating lease right-of-use assets, net | 506 | 524 |
| Goodwill | 1,599 | 1,601 |
| Intangible assets, net | 544 | 588 |
| Other non-current assets | 290 | 245 |
| Investments in unconsolidated affiliates | 124 | 129 |
| Total assets | $ 6,826 | $ 6,830 |
| LIABILITIES AND EQUITY | ||
| Current liabilities: | ||
| Accounts payable | $ 828 | $ 966 |
| Accounts payable to affiliates | 170 | 109 |
| Accrued expenses and other current liabilities | 353 | 310 |
| Operating lease current liabilities | 22 | 21 |
| Total current liabilities | 1,373 | 1,406 |
| Operating lease non-current liabilities | 511 | 528 |
| Long-term debt, net | 3,580 | 3,571 |
| Advances from affiliates | 102 | 116 |
| Deferred tax liabilities | 166 | 156 |
| Other non-current liabilities | 116 | 111 |
| Total liabilities | 5,848 | 5,888 |
| Commitments and contingencies (Note 13) | ||
| Equity: | ||
| Limited partners: | ||
| Common unitholders (84,408,014 and 84,054,765 units issued and outstanding as of Dec |
Source: Item 22 — CONTRACTS (FDD page 68)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, the net value of its inventories as of December 31, 2022, was $821 million. This figure represents the total value of Aplus's inventory, after accounting for factors such as cost or market value adjustments. This is an important figure that reflects the financial health and asset management of Aplus.
The inventories are further broken down into fuel and other inventories. Fuel inventories were valued at $809 million, while other inventories accounted for $12 million. Fuel inventories are stated at the lower of cost or market using the LIFO (last-in-first-out) method. As of December 31, 2022, the fuel inventory balance included lower of cost or market reserves of $116 million.
Understanding the composition and valuation methods of Aplus's inventory can be crucial for prospective franchisees. It provides insight into how Aplus manages its assets and accounts for inventory-related risks. Franchisees should consider these figures in the context of Aplus's overall financial performance and industry trends to assess the potential profitability and stability of the franchise.