What was the total value of Budget's cash and cash equivalents as of December 2023, in millions of dollars?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
| Year Ended December 31, | ||||
|---|---|---|---|---|
| 2024 | 2023 | 2022 | ||
| Net income (loss) | $ | (1,817) $ | 1,635 | $ 2,756 |
| Less: Net income (loss) attributable to non-controlling interests | 4 | 3 | (8) | |
| Net income (loss) attributable to Avis Budget Group, Inc. | (1,821) | 1,632 | 2,764 | |
| Other comprehensive income (loss), net of tax | ||||
| Currency translation adjustments: | (122) | 27 | (46) | |
| Currency translation adjustments, net of tax of $(19), $7 and $(11), respectively | (122) | 21 | (40) | |
| Cash flow hedges: | 15 | 5 | 57 | |
| Net unrealized holding gains (losses), net of tax of $(5), $(2), and $(20), respectively | (21) | (13) | 7 | |
| Reclassification of cash flow hedges to earnings, net of tax of $7, $5, and $(2), respectively | (21) | (.0) | • | |
| Minimum pension liability adjustment: | 10 | (18) | 11 | |
| Pension and post-retirement benefits, net of tax of $(4), $6, and $(4), respectively | 10 | (10) | 11 | |
| Reclassification of pension and post-retirement benefits to earnings, net of tax of $(1), $(1), and $(2), respectively | 4 | 4 | ||
| (114) | 5 | 32 | ||
| Total comprehensive income (loss) attributable to Avis Budget Group, Inc. | $ | (1,935) $ | 1,637 | $ 2,796 |
Avis Budget Group, inc. CONSOLIDATED BALANCE SHEETS (in millions, except par value)
| (In millions, except par value) | | • |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 79)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, as of December 2023, the company's cash and cash equivalents totaled $555 million. This figure represents the amount of liquid assets readily available to Budget for meeting its short-term obligations and funding its operations.
For a prospective franchisee, understanding the parent company's cash position is crucial. A strong cash balance suggests that Budget has the financial stability to support its franchisees, invest in innovation, and weather economic downturns. This can translate into better resources, marketing support, and overall stability for individual franchise locations.
However, it's important to consider this figure in the context of Budget's overall financial health, including its liabilities and long-term debt. While $555 million in cash and cash equivalents appears substantial, prospective franchisees should review the complete financial statements in Item 21 of the FDD and consult with a financial advisor to assess the true financial strength of Budget.