What was the amount of accounts receivable for Buildingstars in 2024?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit.
St. Louis, Missouri March 11, 2025
BUILDINGSTARS INTERNATIONAL, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| ASSETS | |||
| CURRENT ASSETS | |||
| Cash | $ 4,817,525 | $ 4,106,102 |
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 34–43)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, the accounts receivable for the company in 2024 was $3,264,125. This figure represents the amount of money owed to Buildingstars by its customers for services already provided but not yet paid for as of December 31, 2024. Accounts receivable is considered a current asset on the company's balance sheet.
For a prospective franchisee, understanding the accounts receivable is crucial because it reflects the efficiency of Buildingstars in collecting payments and managing its cash flow. A high accounts receivable balance might indicate potential issues with payment collection, which could affect the franchisor's financial stability and ability to support its franchisees. Conversely, a well-managed accounts receivable indicates a healthy financial operation.
It is also useful to compare the 2024 accounts receivable to previous years. In 2023, the accounts receivable was $3,857,717, and in 2022, it was $3,666,318. The decrease in accounts receivable from 2023 to 2024 could indicate improved collection efforts or changes in sales patterns. A potential franchisee should investigate these trends to understand the financial dynamics of Buildingstars and how they might impact their own franchise operations.
Reviewing these figures in the context of Buildingstars's overall financial health, including their liabilities and equity, provides a more comprehensive understanding of the company's financial position. This information, combined with other due diligence, can help a prospective franchisee make an informed decision about investing in a Buildingstars franchise.