What were the net cash flows from operating activities for Counselor Realty in 2024?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
December 31, 2024, 2023 and 2022
| 2024 | 2023 | 2022 | ||
|---|---|---|---|---|
| Cash Flows From Operating Activities | ||||
| Net income (loss) | $ (3,967) | $ | (8,873) | $ 11,780 |
| Adjustments to reconcile net income (loss) to net cash | ||||
| flows from operating activities: | ||||
| Interest income earned on certificate of deposit | (977) | (280) | - | |
| Changes in operating assets and liabilities: | ||||
| Accounts receivable | 1,574 | 1,504 | (662) | |
| Due to franchise | 50 | - | - | |
| Due to parent company | - | - | (500) | |
| Net cash flows from operating activities | (3,320) | (7,649) | 10,618 | |
| Cash Flows From Investing Activities | ||||
| Purchase of certificates of deposit | (136,814) | (130,000) | - | |
| Redemption of certificates of deposit | 130,280 | - | - | |
| Net cash flows from investing activities | (6,534) | (130,000) | - | |
| Increase (decrease) in cash | (9,854) | (137,649) | 10,618 | |
| Cash, Beginning | 80,311 | 217,960 | 207,342 | |
| Cash, Ending | $ |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 32)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, the net cash flows from operating activities in 2024 were $(3,320). This indicates that Counselor Realty experienced a net cash outflow from its core business operations during that year. This figure is derived from the company's cash flow statement, which reconciles net income (or loss) with the actual cash generated or used by the business.
Several factors contribute to this net cash flow figure. The net loss for 2024 was $(3,967). Adjustments were made to reconcile this net loss to the actual cash flows. These adjustments include items such as interest income earned on certificates of deposit ($(977)), changes in accounts receivable ($1,574), and changes in amounts due to the franchise ($50). These adjustments reflect non-cash transactions and changes in working capital accounts that impact the overall cash position.
For a prospective franchisee, this information is crucial as it provides insight into the financial health and operational efficiency of Counselor Realty. A negative cash flow from operating activities could signal potential challenges in generating sufficient cash from its core business to cover expenses and investments. It is important to note that this is just one year's data, and further analysis of trends over multiple years, as well as understanding the underlying reasons for the negative cash flow, is necessary to make informed decisions. Reviewing Counselor Realty's cash flow trends over the past three years, which shows a move from $10,618 in 2022 to $(7,649) in 2023 and $(3,320) in 2024, would be beneficial.