What was the total value of Caring Transitions' shareholders' equity 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 | 485,327 | 24,874 | 186,675 |
| 764,509 | 218,909 | 312,365 | |
| $ 4,766,706 | 2,672,587 | 2,412,806 | |
| Liabilities and shareholders' equity | |||
| Current liabilities: | |||
| Accounts payable | $ 77,008 | 84,511 | 54,536 |
| Accrued expenses | 312,523 | 350,935 | 354,138 |
| Unearned franchise fees | 509,400 | 155,210 | 354,720 |
| Note payable, current portion | 33,137 | 32,159 | 31,210 |
| Operating lease liability, current portion | 131,414 | 25,280 | 140,466 |
| 1,063,482 | 648,095 | 935,070 | |
| Long-term liabilities: | |||
| Franchise contract liability | 1,685,564 | 1,349,008 | 1,104,110 |
| Note payable, net of current portion | 11,275 | 44,412 | 76,570 |
| Operating lease liability, less current portion | 360,040 | - | 47,559 |
| 2,056,879 | 1,393,420 | 1,228,239 | |
| 3,120,361 | 2,041,515 | 2,163,309 | |
| Shareholders' equity: | |||
| Common shares | 100 | 100 | 100 |
| Treasury shares | (367,528) | (367,528) | (367,528) |
| Additional paid-in capital | 73,545 | 73,545 | 73,545 |
| Retained earnings | 1,940,228 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 49)
What This Means (2025 FDD)
According to Caring Transitions' 2025 Franchise Disclosure Document, the total value of the company's shareholders' equity in 2023 was $631,072. This figure represents the net worth of the company attributable to its shareholders, calculated by subtracting total liabilities from total assets.
Specifically, the shareholders' equity is composed of several components. It includes common shares valued at $100, treasury shares which represent shares repurchased by the company and have a negative value of ($367,528), additional paid-in capital of $73,545, and retained earnings of $924,955. Retained earnings represent the accumulated net income of the company that has not been distributed as dividends to shareholders.
For a prospective Caring Transitions franchisee, this figure provides insight into the financial health and stability of the franchisor. A higher shareholders' equity generally indicates a stronger financial position. Reviewing these figures over the three-year period (2022-2024) can reveal trends in the company's profitability and how it manages its equity. It's important to consider these numbers in conjunction with other financial metrics and information provided in the FDD to gain a comprehensive understanding of the franchisor's financial standing.