What was the amount of accounts receivable for Caring Transitions in 2022?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
ities related to revenue from contracts with customers at December 31, 2024, 2023 and 2022 and January 1, 2022:
| December 31, 2024 | December 31, 2023 | December 31, 2022 | January 1, 2022 | |
|---|---|---|---|---|
| Accounts receivable | $ 701,322 | 531,218 | 375,520 | 385,616 |
| Contract liabilities | $ 1,685,564 | 1,349,008 | 1,104,110 | 959,305 |
| Contract assets | $ 279,182 | 194,035 | 125,690 | 99,978 |
Revenue presented in the accompanying financial statements includes the following as of December 31:
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| Revenue recognized at a point in time: | $ 2,523,511 | 1,932,821 | 1,267,052 |
| Franchise fee income | |||
| Revenue recognized over time: |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 49)
What This Means (2025 FDD)
According to Caring Transitions' 2025 Franchise Disclosure Document, the accounts receivable as of December 31, 2022, was $375,520. This figure represents the amount of money owed to Caring Transitions by its customers for services rendered but not yet paid as of that date. Accounts receivable is considered a current asset, reflecting the company's ability to convert these receivables into cash within a year.
For a prospective franchisee, understanding the accounts receivable is crucial as it indicates the efficiency of the company's billing and collection processes. A higher accounts receivable balance might suggest potential issues with collecting payments, while a lower balance could indicate effective collection practices. Monitoring this metric over time can help franchisees assess the financial health and stability of Caring Transitions.
In addition to the general accounts receivable, the FDD also specifies amounts due from related parties. The amounts due from related parties in accounts receivable totaled $14,275 as of December 31, 2022. This is separate from the general accounts receivable and represents money owed by entities related to Caring Transitions, such as those owned by its shareholder. These related party transactions are important to consider as they can impact the overall financial picture of the company.
It is important for potential franchisees to review these figures in the context of the overall financial statements and to compare them with industry benchmarks. Understanding the composition and trends in accounts receivable can provide valuable insights into the financial management and operational effectiveness of Caring Transitions.