What is the difference between the cash and cash equivalents reported for Cinnabon in 2023 and 2024?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
nting estimates made by management, as well as evaluate the overall presentation of the consolidated financial statements.
- Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise subst
Source: Item 23 — Receipts (FDD pages 114–399)
What This Means (2025 FDD)
According to Cinnabon's 2025 Franchise Disclosure Document, the company's cash and cash equivalents decreased from 2023 to 2024. Specifically, cash and cash equivalents were reported as $403 in 2023 and increased to $620 in 2024. This represents an increase of $217 in cash and cash equivalents from 2023 to 2024.
Cash and cash equivalents are defined as funds not subject to restrictions outlined in the "Restricted Cash" section. These funds are held on deposit with commercial banks. The company mitigates credit risk by placing these funds, which generally exceed federally insured limits, in high-quality financial institutions or money market funds that invest in U.S. Treasury bills, notes, or other obligations guaranteed by the U.S. government.
For a prospective Cinnabon franchisee, understanding the levels of cash and cash equivalents the company holds can provide insight into its financial stability and liquidity. While the provided excerpt shows the cash and cash equivalents, it is important to review the full financial statements for a comprehensive understanding of Cinnabon's financial health.