What was the total value of Budget's liabilities exclusive of liabilities under vehicle programs as of December 2023, in millions of dollars?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
| (In millions, except par value) | • | |
|---|---|---|
| As of December 2024 2027 | 2023 | |
| Assets Current assets: | ||
| Current assets. Cash and cash equivalents | $ 534 $ | 555 |
| Casil and Casil equivalents Receivables (net of allowance for doubtful accounts of $96 and $87, respectively) | 838 | 900 |
| Other current assets | 662 | 684 |
| Total current assets | 2,034 | 2,139 |
| Property and equipment, net | 697 | 719 |
| Operating lease right-of-use assets | 3,057 | 2,654 |
| Deferred income taxes | 1,786 | 1,868 |
| Goodwill | 1,071 | 1,099 670 |
| Other intangibles, net | 601 422 | 441 |
| Other non-current assets | 9,668 | 9,590 |
| Total assets exclusive of assets under vehicle programs | 9,000 | 3,350 |
| Assets under vehicle programs: | 60 | 85 |
| Program cash | 17,619 | 21,240 |
| Vehicles, net | 386 | 443 |
| Receivables from vehicle manufacturers and other | 1,308 | 1,211 |
| Investment in Avis Budget Rental Car Funding (AESOP) LLC—related party | 19.373 | 22,979 |
| $ 29,041 $ | 32,569 | |
| Total assets | ||
| Liabilities and stockholders' equity | ||
| Current liabilities: | $ 2,700 $ | 2,627 |
| Accounts payable and other current liabilities | $ 2,700 $ 20 | 32 |
| Short-term debt and current portion of long-term debt | 2,720 | 2,659 |
| Total current liabilities |
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 total liabilities exclusive of liabilities under vehicle programs amounted to $10,095 million. This figure represents the financial obligations Budget had, not including debts specifically tied to their vehicle fleet.
For a prospective franchisee, this number provides insight into the overall financial health and stability of Budget. It is important to consider this liability figure in conjunction with Budget's assets and equity to assess the company's leverage and ability to meet its obligations. A high level of liabilities relative to assets could indicate higher financial risk.
It is also important to note that this figure excludes liabilities under vehicle programs, which are substantial and separately listed. Understanding both categories of liabilities is crucial for a comprehensive view of Budget's financial structure. Franchisees should analyze these figures over time to identify any trends and discuss any significant changes with the franchisor to fully understand their implications.