What was the total amount of Brightstar Care's total current liabilities as of December 31, 2023?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
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Consolidated Balance Sheets
| December 31, 2023 | January 1, 2023 | |
|---|---|---|
| Assets | ||
| Current Assets Cash and cash equivalents Accounts receivable, net of allowances for credit losses of $213,282 and $309,337, respectively | $ 267,218 5,986,114 | $ 16,868 5,170,910 |
| Prepaid expenses | 1,782,560 | 888,291 |
| Inventory | - | 74,793 |
| Other current assets | 435,628 | 724,829 |
| Total Current Assets | 8,471,520 | 6,875,691 |
| Property and Equipment, Net | 8,551,823 | 7,605,214 |
| Other Long-Term Assets Operating lease - right-of-use asset Notes receivable - affiliated companies | 137,232 7,287,629 | 543,187 15,322,517 |
| Total Other Long-Term Assets | 7,424,861 | 15,865,704 |
| Total Assets | $ 24,448,204 | $ 30,346,609 |
| Liabilities and Member's Equity | ||
| Current Liabilities Accounts payable Accrued salaries and payroll tax Operating lease liability Other current liabilities | $ 1,993,783 3,310,197 77,343 3,026,086 | $ 1,891,620 2,695,354 463,557 2,773,898 |
| Total Current Liabilities | 8,407,409 | 7,824,429 |
| Long-Term Liabilities | - | 96,472 |
| Operating lease liability, net of current | ||
| Total Long-Term Liabilities | - | 96,472 |
| Total Liabilities | 8,407,409 | 7,920,901 |
| Commitments and Contingencies | ||
| BrightStar Franchisi |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 117)
What This Means (2025 FDD)
According to Brightstar Care's 2025 Franchise Disclosure Document, the company's total current liabilities as of December 31, 2023, were $8,407,409. This figure represents the sum of various short-term financial obligations that Brightstar Care was expected to settle within one year. These liabilities include accounts payable, accrued salaries and payroll taxes, operating lease liabilities, and other current liabilities.
For a prospective Brightstar Care franchisee, understanding the franchisor's current liabilities is crucial for assessing the financial stability and health of the company. A high level of current liabilities relative to current assets could indicate potential liquidity issues, which might affect the franchisor's ability to support its franchisees. Conversely, a manageable level of current liabilities suggests that the franchisor is in a good position to meet its short-term obligations and invest in the growth of the franchise system.
It is important to note that this figure is just one data point in a comprehensive financial analysis. A potential franchisee should also consider the trend in current liabilities over time, as well as the composition of these liabilities. For instance, a significant increase in accounts payable could indicate that the franchisor is struggling to pay its suppliers on time. By carefully examining the franchisor's financial statements and related disclosures, a prospective franchisee can gain a better understanding of the financial risks and opportunities associated with investing in a Brightstar Care franchise.
In addition to reviewing the current liabilities, prospective franchisees should also look at the company's assets, equity, and overall financial performance to get a well-rounded view of its financial condition. Consulting with a financial advisor or accountant is highly recommended to properly interpret these financial statements and understand their implications.