What was the total interest expense for Christian Brothers Automotive in 2023?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
lders' equity | $ 663,061,823 | $ 576,351,339 |
Consolidated Statements of Income Years Ended December 31, 2023 and 2022
| 2023 | 2022 | |
|---|---|---|
| Revenues | $ 137,196,643 | $ 122,309,502 |
| Operating Costs and Expenses | ||
| Cost of revenues | 42,731,504 | 40,601,283 |
| Selling, general and administrative expenses | 50,507,014 | 41,565,152 |
| Compensation expense associated with ESOP | 10,121,713 | 14,206,798 |
| Total operating costs and expenses | 103,360,231 | 96,373,233 |
| Income from operations | 33,836,412 | 25,936,269 |
| Other Income (Expense) | ||
| Gains on sale-leaseback transactions | 2,044,287 | 920,683 |
| Gains on sale of leased properties | 3,613,496 | 13,994,953 |
| Interest income | 1,234,707 | 859,510 |
| Interest expense | (6,596,136) | (2,497,171) |
| Other income, net | (293,984) | 467,395 |
| Total other income, net | 2,370 | 13,745,370 |
| Net income before state income taxes | 33,838,782 | 39,681,639 |
| State Income Tax Expense | (1,799,431) | (1,535,256) |
| Net income | 32,039,351 | 38,146,383 |
| Less net income attributable to noncontrolling interest | (592,784) | (11, |
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 interest expense for the year 2023 was $6,596,136. This figure is part of the consolidated financial statements, reflecting the overall cost of borrowing for Christian Brothers Automotive during that period.
Interest expense is a critical component of a company's financial performance, as it represents the cost of debt financing. For prospective franchisees, understanding the franchisor's interest expense can provide insights into the company's financial leverage and its ability to manage debt. A higher interest expense could indicate higher debt levels, which might pose a risk if the company's revenues do not adequately cover these costs.
In 2023, Christian Brothers Automotive also reported revenues of $137,196,643 and a net income attributable to Christian Brothers Automotive of $31,446,567. These figures, along with the interest expense, offer a broader view of the company's financial health and profitability. Franchisees should consider these figures in relation to industry benchmarks and the company's growth strategy to assess the financial stability and potential risks associated with investing in a Christian Brothers Automotive franchise.
It is important for potential franchisees to review the complete financial statements and consult with a financial advisor to fully understand the implications of Christian Brothers Automotive's financial performance. This includes analyzing trends in revenue, expenses, and net income over several years to gain a comprehensive understanding of the company's financial stability and growth potential.