What was the net value of Batteries Plus Bulbs' accounts receivable in 2024?

According to Batteries Plus Bulbs' 2025 Franchise Disclosure Document, the net value of accounts receivable as of December 31, 2024, was $29,858. This figure represents the amount of money owed to Batteries Plus Bulbs by its customers and franchisees, after accounting for potential uncollectible amounts. Accounts receivable are considered a current asset, reflecting their expected conversion to cash within one year. This is an important indicator of the company's short-term financial health and its ability to manage credit and collections effectively.

Specifically, the accounts receivable consist of several components: trade receivables ($21,415), franchise royalty and marketing fees ($4,755), vendor allowances ($4,189), a marketing grant ($485), and credit card receivables ($544). From the total of these receivables ($31,388), an allowance for expected credit losses of $1,530 is deducted, resulting in the net accounts receivable balance of $29,858. This allowance is an estimate of the amounts that Batteries Plus Bulbs does not expect to collect, reflecting a conservative approach to valuing its receivables.

For a prospective franchisee, understanding the composition and management of accounts receivable is crucial. It provides insight into the financial stability of Batteries Plus Bulbs and its franchisees. A high level of accounts receivable might indicate generous credit terms or difficulties in collecting payments, while a low level could suggest efficient collection practices or stricter credit policies. Reviewing trends in accounts receivable and the allowance for credit losses over time can offer a more comprehensive view of the company's financial management and risk assessment.