What was the net cash provided by operating activities for Buildingstars in 2024?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
3 | 8,759,493 | | S Corporation Distributions | - | - | (9,387,259) | (9,387,259) | | Balance at December 31, 2024 | $ 500 | $ 1,386,511 | $ 2,302,263 | $ 3,689,274 |
BUILDINGSTARS INTERNATIONAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS
| Years Ended December 31, | ||||||
|---|---|---|---|---|---|---|
| 2024 | 2023 | 2022 | ||||
| OPERATING ACTIVITIES | ||||||
| Net income | $ | 8,759,493 | $ | 8,227,718 | $ | 7,513,928 |
| Adjustments to reconcile net income to net cash | ||||||
| provided by operating activities | ||||||
| Depreciation and amortization | 477,716 | 469,583 | 387,132 | |||
| Gain on sale of leased vehicles | (222,474) | (151,292) | (41,623) | |||
| Noncash lease expense | (3,599) | 37,321 | 3,867 | |||
| Changes in | ||||||
| Accounts receivable | 593,592 | (191,399) | 1,192,423 | |||
| Notes receivable | (524,977) | (514,990) | 192,764 | |||
| Prepaid expenses and other | (19,552) | (42,775) | (125,410) | |||
| Other assets | (24,355) | 6,144 | (20,202) | |||
| Accounts payable | 335,619 | 343,215 | 169,791 | |||
| Accrued expenses | 269,571 | 161,532 | 173,546 | |||
| Deferred franchise sales revenue | 490,634 | 488,873 | (169,298) | |||
| Net cash provided by operating activities | 10,131,668 | 8,833,930 | 9,276,918 | |||
| INVESTING ACTIVITIES | ||||||
| Purchase of property and equipment | (24,842) | - | (23,004) | |||
| Acquisition of business | - | - | (682,738) | |||
| Proceeds from sale of property and equipment | - | - | 21,520 | |||
| Repayment from (advances to) related parties | 664,324 | (70,969) | 130,691 | |||
| Net cash provided (used) by investing activities | 639,482 | (70,969) | (553,531) | |||
| FINANCING ACTIVITIES | ||||||
| Payment of finance lease obligations | (672,468) | (205,683) | (220,916) | |||
| S Corporation distributions | (9,387,259) | (7,314,440) | (9,788,950) | |||
| Net cash used by financing activities | (10,059,727) | (7,520,123) | (10,009,866) | |||
| NET INCREASE (DECREASE) IN CASH | 711,423 | 1,242,838 | (1,286,479) | |||
| CASH, Beginning | 4,106,102 | 2,863,264 | 4,149,743 | |||
| CASH, Ending | $ | 4,817,525 | $ | 4,106,102 | $ | 2,863,264 |
| SUPPLEMENTAL DISCLOSURES | ||||||
| Interest paid | $ | 16,918 | $ | 31,858 | $ | 49,5 |
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 net cash provided by operating activities in 2024 was $10,131,668. This indicates the amount of cash Buildingstars generated from its core business operations during that year. Reviewing this figure alongside previous years (2023 and 2022) can reveal trends in Buildingstars's operational cash flow.
For a prospective franchisee, understanding the net cash provided by operating activities is crucial because it reflects the financial health and stability of Buildingstars. A consistently positive and growing number suggests that the company is effectively managing its operations and generating sufficient cash to cover its expenses and invest in future growth. This can be a reassuring sign for franchisees considering investing in the Buildingstars system.
However, it's important to consider this figure in the context of Buildingstars's overall financial performance. Factors such as net income, depreciation, changes in accounts receivable, and deferred revenue all contribute to the net cash provided by operating activities. A thorough analysis of these individual components, as detailed in the consolidated statement of cash flows, can provide a more comprehensive understanding of Buildingstars's financial performance and potential risks or opportunities for franchisees.
Furthermore, prospective franchisees should compare Buildingstars's net cash provided by operating activities to that of other franchise systems in the commercial cleaning industry to benchmark its performance and assess its competitive position. This comparative analysis, combined with due diligence and consultation with financial advisors, can help franchisees make informed decisions about investing in a Buildingstars franchise.