What was the total value of current assets for Atwell Suites as of December 31, 2023?
Atwell_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
| Assets | |||
|---|---|---|---|
| Current assets: | |||
| Cash and cash equivalents | $ 49,317 | $ 63,805 | |
| Restricted cash | 382 | 2,210 | |
| Accounts receivable, less allowance for expected credit losses of | |||
| $53,457 and $44,963 at December 31, 2024 and 2023, respectively | 393,731 | 350,486 | |
| Receivables from affiliates (Note 13) | 231,752 | 176,120 | |
| Pension assets (Note 9) | – | 250 | |
| Contract assets | 20,005 | 18,178 | |
| Contract costs | 2,811 | 2,731 | |
| Net investment in subleases (Note 6) | 2,418 | 1,463 | |
| Current investments in unconsolidated entities (Note 10) | 3,513 | – | |
| Prepaid and other current assets | 97,399 | 79,950 | |
| Total current assets | 801,328 | 695,193 |
Source: Item 23 — Receipts (FDD pages 99–486)
What This Means (2025 FDD)
According to Atwell Suites's 2025 Franchise Disclosure Document, the total current assets as of December 31, 2023, were $695,193. This figure represents the sum of Atwell Suites's liquid assets and those expected to be converted into cash within one year. These assets include cash and cash equivalents, restricted cash, accounts receivable (net of allowances for expected credit losses), receivables from affiliates, pension assets, contract assets and costs, net investment in subleases, current investments in unconsolidated entities, and prepaid and other current assets.
For a prospective Atwell Suites franchisee, understanding the composition and value of current assets is crucial for assessing the financial health and stability of the franchisor. A substantial amount of current assets suggests that Atwell Suites has sufficient liquidity to meet its short-term obligations and invest in future growth. Conversely, a low level of current assets relative to current liabilities could indicate potential financial strain.
The FDD provides a breakdown of the specific components contributing to the total current assets. For instance, accounts receivable are presented net of allowances for expected credit losses, indicating a conservative approach to valuing these assets. Receivables from affiliates represent amounts due from related entities, which could be subject to different risks and collection timelines compared to regular customer receivables. Contract assets and costs reflect the value of work completed but not yet billed, as well as costs incurred related to securing future revenue.
Overall, the current asset figure provides a snapshot of Atwell Suites's short-term financial position as of December 31, 2023. Prospective franchisees should analyze these figures in conjunction with other financial statement data and key performance indicators to gain a comprehensive understanding of the franchisor's financial strength and ability to support its franchisees.