What was the accumulated depreciation for Caring Transitions in 2023?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
that we identified during the audit.
Clark, Schaefer, Hackett & Co.
Cincinnati, Ohio March 24, 2025
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| Assets | |||
| Current assets: | |||
| Cash | $ 2,075,001 | 949,879 | 979,239 |
| Restricted cash | 239,784 | 170,591 | 115,694 |
| Accounts receivable | 706,468 | 532,863 | 389,795 |
| Other receivables | - | - | 6,463 |
| 3,021,253 | 1,653,333 | 1,491,191 | |
| Property and equipment: | |||
| Internal-use software costs | 1,277,414 | 982,694 | 682,334 |
| Computer equipment | 30,428 | 30,428 | 30,428 |
| Leasehold improvements | 40,610 | 40,610 | 40,610 |
| 1,348,452 | 1,053,732 | 753,372 | |
| Accumulated depreciation | (367,508) | (253,387) | (144,122) |
| 980,944 | 800,345 | 609,250 | |
| Other assets: | |||
| Franchise contract asset | 279,182 | 194,035 | 125,690 |
| Operating right-of-use asset | 485, |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 49)
What This Means (2025 FDD)
According to Caring Transitions' 2025 Franchise Disclosure Document, the accumulated depreciation for the company in 2023 was $253,387. This figure represents the total depreciation expense recognized on the company's assets up to the end of 2023. Accumulated depreciation is a contra-asset account, meaning it reduces the book value of the company's assets.
For a prospective franchisee, understanding accumulated depreciation is crucial for assessing the financial health and asset management practices of Caring Transitions. It provides insight into how the company values its assets and manages depreciation expenses over time. This can be useful in evaluating the company's profitability and overall financial stability.
It's important to note that accumulated depreciation is just one aspect of the company's financial performance. A prospective franchisee should review the entire financial statement, including the income statement, balance sheet, and cash flow statement, to gain a comprehensive understanding of Caring Transitions' financial condition. Additionally, comparing these figures with industry benchmarks and trends can provide valuable context.