What is the trend of Caring Transitions' accumulated depreciation from 2023 to 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 | 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's 2025 Franchise Disclosure Document, the accumulated depreciation increased from 2023 to 2024. In 2023, the accumulated depreciation was ($253,387), and by 2024, it had increased to ($367,508). This represents an increase in accumulated depreciation of $114,121 during that year.
Accumulated depreciation is a contra-asset account that represents the total depreciation expense recognized on an asset over its life. The increase in accumulated depreciation suggests that Caring Transitions recognized more depreciation expense in 2024 than in the previous year. This could be due to the purchase of new assets, the aging of existing assets, or a change in depreciation methods.
For a prospective franchisee, this information provides insight into the depreciation practices of Caring Transitions. While franchisees do not directly share in these specific financials, understanding the franchisor's asset management and accounting practices can be helpful. It is important to note that depreciation is a non-cash expense, meaning it does not represent an actual outflow of cash. However, it does reduce the company's taxable income, which can have a positive impact on its overall financial performance.