What was the total amount of accounts receivable for Christian Brothers Automotive as of December 31, 2024?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
| sheets at December 31: | ||||
|---|---|---|---|---|
| 2024 | 2023 | |||
| Cash and cash equivalents | $ 656,000 | $ | - | |
| Accounts receivable | 2,157,000 | 1,041,000 | ||
| Prepaid expenses and other assets | 488,000 | - | ||
| Leased properties, net | 129,994,000 | 138,791,000 | ||
| Property and equipment, net | 1,486,000 | - | ||
| Intangible assets, net | 3,936,000 | - | ||
| Goodwill, net | 6,739,000 | - | ||
| Total assets | $ 145,456,000 | $ 139,832,000 | ||
| Accounts payable and accrued expenses | $ 29,908,000 | $ 24,608,000 | ||
| Current portion of long-term debt | 2,084,000 | 4,364,000 | ||
| Long-term debt, net of current portion | 84,422,000 | 85,438,000 | ||
| Subordinated debt | 29,916,000 | 29,067,000 | ||
| Shareholders' equity | (874,000) | (3,645,000) | ||
| Total liabilities and VIE's equity | $ 145,456,000 | $ 139,832,000 |
Source: Item 23 — RECEIPTS (FDD pages 76–372)
What This Means (2025 FDD)
According to Christian Brothers Automotive's 2025 Franchise Disclosure Document, the company's accounts receivable as of December 31, 2024, was $2,157,000, compared to $1,041,000 in 2023. Accounts receivable represents the money owed to Christian Brothers Automotive by its customers or franchisees for services rendered or products sold on credit. This figure is a key indicator of the company's financial health and its ability to manage credit and collections effectively. A higher accounts receivable balance could indicate that Christian Brothers Automotive is extending more credit to its customers, experiencing slower payment cycles, or facing challenges in collecting outstanding debts. Conversely, a lower balance might suggest more efficient credit management or stricter payment terms.
For a prospective franchisee, understanding the accounts receivable trends of Christian Brothers Automotive is crucial. It provides insights into the financial stability of the franchisor and the potential payment behaviors of customers within the Christian Brothers Automotive system. Franchisees should inquire about the typical credit terms offered to customers, the average collection period, and the franchisor's policies for managing and recovering overdue payments. This information can help franchisees anticipate cash flow patterns and manage their own finances effectively.
The significant increase in accounts receivable from 2023 to 2024, from $1,041,000 to $2,157,000, may warrant further investigation. Potential franchisees should ask Christian Brothers Automotive about the reasons for this increase. It could be due to factors such as increased sales, changes in credit policies, or acquisitions that have expanded the customer base. Understanding the underlying drivers of this change is essential for assessing the financial risks and opportunities associated with investing in a Christian Brothers Automotive franchise. Furthermore, franchisees should also inquire about the write-off policy for uncollectible accounts, as this can impact the overall profitability of the franchise system.