What was the reported value of 'other' inventories for Aplus as of December 31, 2022?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
ended December 31, 2023, 2022 and 2021, the Partnership's cost of sales included an unfavorable inventory adjustment of $114 million and favorable inventory adjustments of $5 million and $190
Source: Item 22 — CONTRACTS (FDD page 68)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, the value of 'other' inventories as of December 31, 2022, was $12 million. This figure is a component of the total inventory value reported by Aplus.
For a prospective Aplus franchisee, understanding the breakdown of inventory values can be important for assessing the financial health and operational efficiency of the business. 'Other' inventories may include items beyond fuel, such as merchandise or supplies, and their valuation affects the overall asset picture of Aplus.
It's worth noting that Aplus uses different methods to value its inventories, with fuel inventories stated at the lower of cost or market using the LIFO method, and merchandise inventories stated at the lower of average cost or market. These accounting methods can impact the reported value of inventories and, consequently, the financial statements of Aplus.