What was the net amount of accounts receivable for Batteries Plus Bulbs in 2024?
Batteries_Plus_Bulbs Franchise · 2025 FDDAnswer from 2025 FDD Document
| Current assets | |||
|---|---|---|---|
| Cash and cash equivalents | $ 10,716 | $ 26,197 | |
| Accounts receivable, net | 29,858 | 25,763 | |
| Merchandise inventories, net | 56,393 | 48,576 | |
| Prepaid expenses | 4,426 | 4,665 | |
| Due from marketing fund | 668 | 1,034 |
Source: Item 23 — Receipts (FDD pages 80–279)
What This Means (2025 FDD)
According to Batteries Plus Bulbs's 2025 Franchise Disclosure Document, the net accounts receivable for 2024 was $29,858. Accounts receivable represents the money owed to Batteries Plus Bulbs by its customers for goods or services already provided. The 'net' amount means that any allowances for potential uncollectible accounts (credit losses) have already been subtracted from the total amount owed. In 2024, the allowance for expected credit losses was $1,530.
For a prospective franchisee, accounts receivable is an important indicator of the financial health of Batteries Plus Bulbs. A high accounts receivable balance could indicate that Batteries Plus Bulbs is having trouble collecting payments from its customers, which could lead to cash flow problems. However, it could also simply reflect strong sales growth. The FDD also lists the accounts receivable for 2023 as $25,763. The increase in accounts receivable from 2023 to 2024 could be due to increased sales or changes in credit policies.
It is important to note that these figures reflect the consolidated financial statements of Batteries Plus Bulbs as a whole, not the performance of any individual franchise location. A franchisee's own accounts receivable will depend on factors such as their local market conditions, customer base, and credit policies. Prospective franchisees should inquire about the typical accounts receivable performance of existing franchise locations and understand the franchisor's policies for managing and collecting accounts receivable.