What was the total value of merchandise inventories, net, for Batteries Plus Bulbs in 2023?
Batteries_Plus_Bulbs Franchise · 2025 FDDAnswer from 2025 FDD Document
| Merchandise inventories are comprised of the following as of December 31: | 2024 | 2023 |
|---|---|---|
| Merchandise inventories | $59,560 | $51,367 |
| Less: reserve for inventory obsolescence | (3,167) $56,393 | (2,791) $48,576 |
Source: Item 23 — Receipts (FDD pages 80–279)
What This Means (2025 FDD)
According to Batteries Plus Bulbs's 2025 Franchise Disclosure Document, the total value of merchandise inventories, net, for the company in 2023 was $48,576. This figure represents the value of the company's inventory after accounting for a reserve for inventory obsolescence.
For a prospective franchisee, this number indicates the level of investment Batteries Plus Bulbs has in its inventory. It also shows the net valuation after accounting for potential obsolescence, which is a standard accounting practice to reflect the real value of the inventory. This can be useful for understanding how the company manages its assets and accounts for potential losses in inventory value.
It's important to note that the gross merchandise inventories before the reserve for obsolescence was $51,367 in 2023. The reserve for inventory obsolescence was $2,791. This difference highlights the importance of considering not just the initial value of inventory, but also the potential for some inventory to become obsolete and lose value.