What was the net value of Clear Pest Pros' accounts receivable as of December 31, 2023?
Clear_Pest_Pros Franchise · 2025 FDDAnswer from 2025 FDD Document
ed Financial Statements (dollars in thousands)**
5. Accounts Receivable
The following is the detail of accounts receivable:
| December 31, | 2024 | 2023 | 2022 |
|---|---|---|---|
| Trade receivables | $ 2,627 | $ 2,880 | $ 5,231 |
| Other | 979 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 67)
What This Means (2025 FDD)
According to Clear Pest Pros' 2025 Franchise Disclosure Document, the net accounts receivable as of December 31, 2023, was $2,338. This figure represents the amount of money that Clear Pest Pros expected to receive from its customers after accounting for potential credit losses. Accounts receivable is considered a current asset, reflecting its short-term nature and expected conversion to cash within a year.
Understanding the composition of accounts receivable is important for prospective franchisees. The total trade receivables for 2023 were $2,880, with an additional $431 categorized as 'Other.' However, Clear Pest Pros also accounted for potential credit losses by subtracting an allowance of $973. This allowance reduces the gross receivables to the net figure reported on the balance sheet, providing a more realistic view of the company's expected cash inflows.
For a potential Clear Pest Pros franchisee, this indicates the level of outstanding payments that Clear Pest Pros is dealing with. It also shows the amount of receivables they don't expect to collect. Monitoring accounts receivable and the allowance for credit losses can help franchisees assess the financial health and efficiency of Clear Pest Pros' operations. A high level of uncollectible receivables could indicate issues with credit policies or customer payment behavior, which could impact the franchisor's financial stability and support for franchisees.