What was the net accounts receivable for Cool Binz as of December 31, 2023?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
| December 31, | 2024 | 2023 | 2022 |
|---|---|---|---|
| Trade receivables | $2,627 | $2,880 | $5,231 |
| Other | 979 | 431 | 432 |
| Less: allowance for credit losses | 878 | 973 | 4,589 |
| Net Accounts Receivable | $2,728 | $2,338 | $3,074 |
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, the net accounts receivable as of December 31, 2023, was $2,338. This figure represents the amount of money Cool Binz expected to receive from its customers after accounting for potential credit losses. Understanding the net accounts receivable can give a prospective franchisee insight into the financial health and stability of Cool Binz.
Accounts receivable are amounts due to a business for goods or services it has already provided. However, not all receivables are collected due to various reasons such as customer default. Therefore, businesses create an allowance for credit losses, which is an estimate of the receivables that may not be collected. The net accounts receivable is calculated by subtracting this allowance from the total accounts receivable.
For a potential Cool Binz franchisee, this information is useful for assessing the company's financial management and the quality of its customer base. A high net accounts receivable suggests that Cool Binz is generally successful in collecting payments, while a low or declining figure might indicate potential issues with customer payments or credit management. Reviewing these figures over several years, as presented in the table, provides a more comprehensive understanding of the trend and potential risks.