What was the net cash provided by operating activities for Auntie Annes in the latest year presented?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
| For the fiscal years ended: | 2023 | 2022 | 2021 | |
|---|---|---|---|---|
| Cash flows from operating activities: | ||||
| Net income | $ 2 48,990 | $ 2 08,711 | $ 1 74,623 | |
| Adjustments to reconcile net income to net cash provided by | ||||
| operating activities: | ||||
| Depreciation and amortization expense | 3 00 | 2 ,037 | 3,030 | |
| Loss (gain) on assets held for lease, net | - | ( 4) | 11 | |
| Provision for (recoveries from) bad debts | 3 | (289) | 120 | |
| Changes in operating assets and liabilities: | ||||
| Accounts receivable, prepaid expenses and other assets | ( 5,708) | (2,295) | (923) | |
| Accrued expenses and other liabilities | 4 73 | (121) | 677 | |
| Deferred revenue | ( 1,626) | 2,100 | (626) | |
| Intercompany receivable / payable | 2 ,040 | (495) | 3 ,362 | |
| Net cash provided by operating activities | 2 44,472 | 209,644 | 180,274 |
Source: Item 23 — RECEIPTS (FDD pages 106–366)
What This Means (2024 FDD)
According to Auntie Annes's 2024 Franchise Disclosure Document, the net cash provided by operating activities for the fiscal year ended December 31, 2023, was $244,472. This figure represents the cash flow generated from the company's core business operations during that period. It's a key indicator of Auntie Annes's financial health and its ability to fund its operations and growth.
In addition to the 2023 figure, the FDD provides comparable data for the two preceding years. The net cash provided by operating activities was $209,644 in 2022 and $180,274 in 2021. This historical data allows prospective franchisees to assess the trend in Auntie Annes's operating cash flow over time. A consistent or increasing trend generally indicates stable or improving financial performance, which can be a positive sign for potential investors.
It is important to note that net cash provided by operating activities is not the same as net income. The former reflects the actual cash generated by the business, while the latter is an accounting measure that includes non-cash items such as depreciation and amortization. The FDD includes a reconciliation of net income to net cash provided by operating activities, which shows the adjustments made to net income to arrive at the cash flow figure. These adjustments include depreciation and amortization expense, loss or gain on assets held for lease, provision for bad debts, changes in operating assets and liabilities, deferred revenue, and intercompany transactions.
For a prospective Auntie Annes franchisee, understanding the net cash provided by operating activities is crucial for evaluating the financial viability of the franchise system. It provides insight into the company's ability to generate cash from its operations, which can impact its ability to support franchisees, invest in marketing and innovation, and maintain a healthy financial position. Reviewing this figure in conjunction with other financial data in the FDD, such as revenue, expenses, and net income, can provide a comprehensive understanding of Auntie Annes's financial performance.