What was the amount of Corcoran's provision for doubtful accounts in 2024?
Corcoran Franchise · 2025 FDDAnswer from 2025 FDD Document
e U.S. federal statutory rate of 21% to the actual expense was as follows:
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| Federal statutory rate | 21 % | 21 % | 21 % |
| State and local income taxes, net of federal tax benefits | 5 | 1 | 3 |
| Non-deductible equity compensation | (1) | (1) | — |
| Non-deductible executive compensation | (4) | (4) | (1) |
| Goodwill impairment | — | (5) | (8) |
| Uncertain tax positions | — | — | (1) |
| Tax credits (a) | 5 | 6 | 7 |
| Net change in valuation allowance (b) | (21) | (5) | — |
| Other permanent differences | (3) | — | (2) |
| Effective tax rate | 2 % | 13 % | 19 % |
(a) This item in 2022 includes a benefit related to the completion of a research tax credit study for tax years 2016 through 2022.
_______________
Deferred income taxes result from temporary differences between the amount of assets and liabilities recognized for financial reporting and tax purposes. The components of the deferred inco
Source: Item 23 — RECEIPTS (FDD pages 75–276)
What This Means (2025 FDD)
According to Corcoran's 2025 Franchise Disclosure Document, the provision for doubtful accounts in 2024 was $9. This figure represents Corcoran's estimate of uncollectible accounts receivable as of December 31, 2024. It reflects the company's assessment of potential losses from outstanding invoices and debts. The corresponding amount for the previous year, 2023, was $10.
For a prospective franchisee, the provision for doubtful accounts is an important indicator of the financial health and stability of Corcoran. A higher provision may suggest that Corcoran is experiencing difficulties in collecting payments from its customers or franchisees, which could impact its cash flow and profitability. Conversely, a lower provision may indicate that Corcoran has effective credit control and collection procedures in place.
It is important to note that the provision for doubtful accounts is an estimate and may not accurately reflect the actual amount of uncollectible accounts. The actual amount of uncollectible accounts may be higher or lower than the provision, depending on various factors such as economic conditions, industry trends, and the creditworthiness of Corcoran's customers and franchisees. Franchisees should consider this when assessing the financial risks and opportunities associated with investing in a Corcoran franchise.
Prospective franchisees should review Corcoran's financial statements carefully and consult with a financial advisor to understand the implications of the provision for doubtful accounts and other financial metrics. They should also inquire about Corcoran's credit control and collection policies and procedures to assess the effectiveness of its risk management practices.