What were Cinch I.T.'s trade receivables in 2021?
Cinch_I_T Franchise · 2024 FDDAnswer from 2024 FDD Document
| CINCH FRANCE | HISE, LLC | |||
|---|---|---|---|---|
| BALANCE S | ||||
| DECEMBER 31, 20 | 22 AND 2021 | |||
| $15-50-50MS(7M-4-5 | 40.000 | |||
| ASSET | S | 2022 | 2021 | |
| CURRENT ASSETS | - | |||
| Cash | S | 189.038 | S | 101,234 |
| Receivables: | ||||
| Trade | 54,720 | 112,709 |
Source: Item 23 — RECEIPTS (FDD pages 60–269)
What This Means (2024 FDD)
According to Cinch I.T.'s 2024 Franchise Disclosure Document, the company's trade receivables for the year 2021 were $112,709.
Trade receivables represent the money owed to Cinch I.T. by its customers for services rendered but not yet paid. This figure is an important indicator of the company's financial health and its ability to collect revenue. A higher number of trade receivables could indicate that Cinch I.T. is extending more credit to its customers or that it is having difficulty collecting payments.
Prospective franchisees should pay close attention to the trend in trade receivables over time. A consistently increasing balance could signal potential problems with cash flow or customer payment practices. It's also worth investigating Cinch I.T.'s policies for managing and collecting receivables, as well as its allowance for doubtful accounts, to get a better understanding of the risk associated with these assets.