What was the amount of Budget's total stockholders' equity at the end of 2022?
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, the total stockholders' equity at the end of December 31, 2022 was $$(700). This figure represents the net assets owned by the stockholders of Avis Budget Group, Inc. after deducting all liabilities.
Stockholders' equity is a crucial metric for assessing the financial health of Budget. It includes several components such as common stock, additional paid-in capital, retained earnings, accumulated other comprehensive loss, and treasury stock. These elements combine to reflect the overall investment and accumulated profits (or losses) attributable to the company's owners.
The negative value of $$(700) indicates that Budget had a stockholders' deficit at the end of 2022, meaning its liabilities exceeded its assets at that time. This could be a point of concern for potential investors and franchisees, as it suggests financial strain or accumulated losses. It is important to investigate the reasons behind this deficit and understand the company's plan to improve its equity position.
Prospective franchisees should carefully review Budget's financial statements and consult with financial advisors to fully understand the implications of the stockholders' equity position. Understanding the trend of this metric over several years, as well as the strategies Budget has in place to strengthen its balance sheet, is essential for making an informed investment decision.