What was the net cash provided by operating activities for Caring Transitions in 2022?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
,000) | (1,947,499) | (1,092,501) | | Retained earnings, ending | $ 1,940,228 | 924,955 | 543,380 |
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| Cash flows from operating activities | $ 2,720,273 | 2,329,074 | 1,017,523 |
| Net income | |||
| Adjustment to reconcile net income to net cash | |||
| provided by operating activities: | |||
| Depreciation | 114,120 | 109,265 | 78,898 |
| Non-cash lease expense | 5,721 | (944) | 1,350 |
| Net change in assets and liabilities: | (173,605) | (143,068) | 4,928 |
| Accounts receivable | |||
| Other receivable | - | 6,463 | (6,463) |
| Deposit - payroll | - | - | 30,396 |
| Franchise contract asset | (85,147) | (68,345) | (25,712) |
| Accounts payable | (7,503) | 29,975 | 54,536 |
| Unearned revenue | 354,190 | (199,510) | 279,820 |
| Franchise contract liability | 336,556 | 244,898 | 144,805 |
| Accrued expenses | (38,412) | (3,203) | 139,062 |
| Net cash provided by operating activities | 3,226,193 | 2,304,605 | 1,719,143 |
| Cash flows from investing activities | |||
| Property and equipment purchased | (294,719) | (300,360) | (401,836) |
| Net cash used by investing activities | (294,719) | (300,360) | (401,836) |
| Cash flows from financing activities | |||
| Repayment of notes payable | (32,159) | (31,209) | (30,282) |
| Distributions | (1,705,000) | (1,947,499) | (1,092,501) |
| Net cash used by financing activities | (1,737,159) | (1,978,708) | (1,122,783) |
| Change in cash and restricted cash | 1,194,315 | 25,537 | 194,524 |
| Cash and restricted cash at beginning of year | 1,120,470 | 1,094,933 | 900,409 |
| Cash and restricted cash at end of year | $ 2,314,785 | 1,120,470 | 1,094,933 |
| Supplementary information: | |||
| Cash paid for interest | $ 804 | 1,753 | 3,734 |
| Cash and restricted cash: | |||
| Cash | $ 2,075,001 | 949,879 | 979,239 |
| Restricted cash | 239,784 | 17 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 49)
What This Means (2025 FDD)
According to Caring Transitions' 2025 Franchise Disclosure Document, the net cash provided by operating activities in 2022 was $1,719,143. This figure represents the cash Caring Transitions generated from its core business operations during that year.
For a prospective franchisee, this number indicates the financial health and stability of the franchisor. A positive and substantial net cash flow from operating activities suggests that Caring Transitions is effectively managing its revenue and expenses. This can be a reassuring sign, as it demonstrates the franchisor's ability to sustain its operations and support its franchisees.
It's important to note that while a strong net cash flow is a positive indicator, prospective franchisees should also consider other factors, such as the company's overall financial performance, its debt levels, and its growth prospects. Reviewing the complete financial statements and consulting with a financial advisor can provide a more comprehensive understanding of Caring Transitions' financial position.