What was the change in accounts payable for City Wide in 2024?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | 2022 | ||||
|---|---|---|---|---|---|---|
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||
| Current Liabilities | ||||||
| Accounts payable | $ 16,356,455 | $ 13,026,131 | $ 9,791,091 |
Source: Item 23 — RECEIPT (FDD pages 65–271)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, the company's accounts payable in 2024 was $16,356,455, while in 2023, it was $13,026,131. This represents an increase of $3,330,324 in accounts payable from 2023 to 2024.
Accounts payable represents the short-term debts City Wide owes to its suppliers and other creditors. An increase in accounts payable could indicate that City Wide is utilizing more credit from its suppliers, potentially to manage its cash flow or invest in growth opportunities. However, it could also signal potential challenges in meeting its short-term obligations if not managed carefully.
For a prospective City Wide franchisee, this information provides insight into the company's financial management and its relationships with suppliers. It's important to consider this trend in conjunction with other financial metrics to assess the overall financial health and stability of City Wide. A significant increase in accounts payable should prompt further investigation into the reasons behind the change and its potential implications for the franchisee's business operations.