What was the amount of Budget's retained earnings as of December 2023, in millions of dollars?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
644 | 642 | 16 626 $ 642 | | Cash and cash equivalents, program and restricted cash, end of period | $ | 597 | $ 644 | $ 642 | | Supplemental disclosure Interest payments Income tax payments, net | $ $ | 1,273 50 | | |
Avis Budget Group, Inc. CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (In millions)
| Commo | n Stock | Additional Pald-in | Retained Earnings | Accumulated Other | Treasur | y Sto | Stockholders' Equity Attributable to Avis Budget | Non-controlling Interests | Total Stoci | cholders' Equity | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Shares | Amou | int | Capital | . ( | (Accumulated Deficit) | (Loss) | Shares | _ | Amount | Group, Inc. $ (220) | ÷ | 11 | 3 | (209) | ||
| Balance at January 1, 2022 | 137.1 | $ | 1 | $ 6,676 | $ | (185) | $ | (133) | (81,2) | $ | (6,579) | $ (220) | • | • | . | |
| Comprehensive Income: | _ | 2.764 | _ | _ | _ | 2.764 | (8) | 2,756 32 | ||||||||
| Net income | _ | _ | _ | _ | 32 | _ | - | 32 | _ | 2,789 | ||||||
| Other comprehensive income | _ | _ | 2,784 | 32 | 2,796 | (8) | 2,700 | |||||||||
| Total comprehensive income | _ | _ | 24 | _ | _ | _ | _ | 24 | _ | (36) | ||||||
| Contributions from non-controlling interests | _ | (34) | _ | _ | 0.3 | (2) | (38) | (3.267) | ||||||||
| Net activity related to restricted stock units | _ | _ | - | (16.7) | _ | (3,287) | _ | |||||||||
| Repurchases of common stock | ||||||||||||||||
| Balance at December 31, 2022 | 137.1 | 5 | 1 | $ 6,868 | 5 | 2.579 | $ | (101) | (97.6) | $ | (9,848) | $ (703) | $ | 3 | $ | (700) |
| Comprehensive income: | _ | 1,632 | 3 | 1,635 | ||||||||||||
| Net income | _ | - | _ | 1,632 | 7 | _ | 5 | _ | 5 | |||||||
| Other comprehensive income | - | _ | - | _ | 1.632 | _ | 1,637 | _ | 3 | 1,640 | ||||||
| Total comprehensive income | 1,632 | 0.3 | 3 | (31) | (31) | |||||||||||
| Net activity related to restricted stock units | _ | _ | (32) | (2) | _ | (4.3) | (897) | (897) | (897) | |||||||
| Repurchases of common stock (4) | _ | _ | _ | (355) | _ | (355) | (355) | |||||||||
| Dividends paid ($10.00 per share) | - | _ | (101,6) | - | (10,742) | $ (349) | s | ê | 5 | (343) | ||||||
| Balance at December 31, 2023 | 137.1 | $ | 1 | $ 6 634 | s | 3,854 | 5 | (96) | (101,0) | • | (10.742) | (, | ||||
| Comprehensive income: | 4 004 | _ | _ | _ | (1,821) | 4 | (1,817) | |||||||||
| Net income (loss) | _ | _ | _ | (1.821) | (114) | _ | _ | (114) | (114) | |||||||
| Other comprehensive income (loss) | - | _ | _ | _ | (1,821) | - | (114) | (1,935) | _ | 4 | (1,931) | |||||
| Total comprehensive income (loss) | (14) | (1,021) | (, | 0.2 | 21 | 3 | 3 | |||||||||
| Net activity related to restricted stock units | - | - |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 79)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, as of December 31, 2023, the company's retained earnings totaled $3,854 million. Retained earnings represent the accumulated net income of Budget that has not been distributed to shareholders as dividends. Instead, these earnings are reinvested back into the company to support growth, expansion, and other business initiatives.
For a prospective Budget franchisee, this figure provides insight into the financial health and stability of the company. A substantial amount of retained earnings suggests that Budget has been profitable in the past and has the capacity to fund future development and support its franchisees. This can be reassuring for individuals considering investing in a Budget franchise, as it indicates a lower risk of financial instability or reliance on external funding.
It's important to note that while retained earnings are a positive indicator, they should be considered in conjunction with other financial metrics and qualitative factors when evaluating a franchise opportunity. Factors such as the company's debt levels, cash flow, and overall business strategy should also be taken into account to gain a comprehensive understanding of its financial position and future prospects.