What was the depreciation expense for City Wide in 2024?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
| - | | - | - | | 39,507 | 39,507 | | Distributions | | | | | | | (16,582,517) | | | (16,582,517) | | Balance December 31, 2024 | $ | 2,100 | $ | 210,000 | $ | 366,366 | $ 13,031,512 | $ | 54,347 | $ 13,664,325 |
City Wide Franchise Company, Inc. & Subsidiaries Consolidated Statements of Cash Flows Years Ended December 31, 2024, 2023, and 2022
| | 2024 | 2023 | 2022 | |-------------------------------------------------------------------------------------------
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, the depreciation expense for the year 2024 was $999,912. This figure is part of the consolidated statements of cash flows, which details the movement of cash both into and out of the company. Depreciation is a non-cash expense, meaning it reduces net income without actually involving a cash outflow.
For a prospective City Wide franchisee, understanding depreciation is important for assessing the company's financial health. While depreciation itself doesn't affect cash flow, it does impact net income, which is a key metric for evaluating profitability. Higher depreciation expenses can indicate significant investments in assets like equipment or property, which may be necessary for supporting franchise operations.
It's also worth noting that depreciation can be calculated using different methods (as described in chunk 4), and the choice of method can affect the reported expense. In City Wide's case, depreciation is charged to expense on the straight-line basis over the estimated useful life of each asset. Reviewing the depreciation method and asset lives can provide insights into how City Wide manages its assets and reports its financial performance. Franchisees may want to compare these figures with industry benchmarks to gauge City Wide's relative efficiency and investment strategy.