What was the net cash provided by operating activities for Benihana in 2022?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
| he year ended December 31, | ||||
|---|---|---|---|---|
| 2022 | 2021 | |||
| Net cash provided by (used in): | ||||
| Operating activities | $ | 25,251 | $ | 30,966 |
| Investing activities | (32,629) | (11,467) | ||
| Fina |
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, the net cash provided by operating activities in 2022 was $25.3 million. This is less than the $31.0 million for 2021. The decrease in net cash from operating activities is primarily attributed to payments on accrued expenses, which were partially offset by collections on accounts receivable.
Net cash from operating activities reflects the cash generated from Benihana's core business operations. It is an indicator of the company's ability to fund its ongoing expenses and investments. For a prospective franchisee, a positive and stable trend in net cash from operating activities suggests that the Benihana franchise system is healthy and capable of supporting its franchisees.
However, it is important to note that this figure can be influenced by various factors, including changes in accounts receivable, accounts payable, and accrued expenses. Therefore, prospective franchisees should review the complete financial statements and related notes to gain a comprehensive understanding of Benihana's financial performance and cash flow dynamics.