What was the allowance for credit losses reported by Carls in 2024?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
r December 15, 2024 for public entities. For other entities, the standard is effective for annual reporting periods beginning after December 15, 2025. Early adoption of the guidance is permitted. We are currently evaluating the impact the adoption of this standard will have on our Consolidated Financial Statements.
NOTE 3 — ACCOUNTS RECEIVABLE, NET
Accounts receivable, net, as of January 31, 2024 and 2023 consisted of the following:
| 2024 | 2023 | |
|---|---|---|
| Trade receivables | $ 37,850 | $ 37,474 |
| Leases receivable | 180 | 206 |
| Taxes receivable | 24 | 183 |
| Notes receivable | 2,759 | 1,711 |
| Allowance for credit losses | (2,375) | (2,033) |
| Total accounts receivable, net | $ 38,438 | $ 37,541 |
The following table summarizes the activity in the allowance for credit losses:
| Fiscal 2024 | Fiscal 2023 | |
|---|---|---|
| Allowance for credit losses, beginning of year | $ 2,033 | $ 3,413 |
| Provision | 2,133 | 1,270 |
| Recoveries | (894) | (1,701) |
| Charge-offs | (897) | (949) |
| Allowance for credit losses, end of year | $ 2,375 | $ 2,033 |
**N
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 79–80)
What This Means (2024 FDD)
According to Carls's 2024 Franchise Disclosure Document, the allowance for credit losses was reported in several different contexts. In one instance, the allowance for credit losses at the end of fiscal year 2024 was reported as $2,375, compared to $2,033 at the end of fiscal year 2023. This table summarizes the activity in the allowance for credit losses.
In another instance, related to accounts receivable, the allowance for credit losses for 2024 is reported as ($2,375) and for 2023 as ($2,033). These figures are part of a table showing trade receivables, leases receivable, taxes receivable, and notes receivable. The total accounts receivable, net, is $38,438 for 2024 and $37,541 for 2023.
Additionally, for a separate set of receivables, the allowance for credit losses is reported as ($1,893) for 2024 and ($1,550) for 2023. This is part of a table showing trade receivables, leases receivable and notes receivable. The total accounts receivable, net, for this set is $21,748 for 2024 and $20,699 for 2023. It is important for a prospective franchisee to understand the context of each of these figures and how they relate to the overall financial health of Carls.