What is the difference between Caring Transitions' accounts receivable in 2022 and 2024?
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 | 1 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 49)
What This Means (2025 FDD)
According to Caring Transitions' 2025 Franchise Disclosure Document, the company's accounts receivable was $389,795 in 2022 and $706,468 in 2024. This represents an increase of $316,673 in accounts receivable between 2022 and 2024. Accounts receivable represents money owed to Caring Transitions by its customers for services already provided. This figure is an important indicator of the company's financial health and its ability to collect payments for its services.
A prospective franchisee should consider the trend in accounts receivable when evaluating the financial performance of Caring Transitions. A significant increase in accounts receivable could indicate that the company is having difficulty collecting payments from its customers, which could negatively impact its cash flow. However, an increase could also reflect overall business growth. Therefore, it's important to consider this metric in conjunction with other financial data and industry benchmarks.
It is also important to note that the FDD states that there were no accounts receivable concentrations at December 31, 2024, 2023 and 2022. This means that Caring Transitions' accounts receivable is not overly reliant on a small number of customers, which reduces the risk of significant financial losses if one or more of those customers are unable to pay.