What was the total amount of Crowne Plaza's current assets as of December 31, 2024?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
| Assets | |||
|---|---|---|---|
| Current assets: | |||
| Cash and cash equivalents | $ 49,317 | $ 63,805 | |
| Restricted cash | 382 | 2,210 | |
| Accounts receivable, less allowance for expected credit losses of | |||
| $53,457 and $44,963 at December 31, 2024 and 2023, respectively | 393,731 | 350,486 | |
| Receivables from affiliates (Note 13) | 231,752 | 176,120 | |
| Pension assets (Note 9) | – | 250 | |
| Contract assets | 20,005 | 18,178 | |
| Contract costs | 2,811 | 2,731 | |
| Net investment in subleases (Note 6) | 2,418 | 1,463 | |
| Current investments in unconsolidated entities (Note 10) | 3,513 | – | |
| Prepaid and other current assets | 97,399 | 79,950 | |
| Total current assets | 801,328 | 695,193 |
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to Crowne Plaza's 2025 Franchise Disclosure Document, the total current assets as of December 31, 2024, were $801,328. This figure represents the sum of Crowne Plaza's assets that are expected to be converted into cash or used up within one year. These assets include cash and cash equivalents, restricted cash, accounts receivable, receivables from affiliates, pension assets, contract assets and costs, net investment in subleases, current investments in unconsolidated entities, and prepaid and other current assets.
For a prospective franchisee, understanding the composition and value of current assets is crucial. It provides insight into the company's short-term financial health and its ability to meet its immediate obligations. A higher value of current assets relative to current liabilities generally indicates a stronger liquidity position.
It's also important to note the specific components of these current assets. For example, a significant portion of accounts receivable may indicate potential issues with collecting payments, while a large amount of prepaid assets could reflect significant upfront investments. Reviewing these details in the context of Crowne Plaza's overall financial statements can offer a more comprehensive understanding of the company's financial standing.
Comparing these figures with previous years and industry benchmarks can further help potential franchisees assess the financial stability and performance of Crowne Plaza. Additionally, it would be prudent for prospective franchisees to inquire about the specific accounting practices and assumptions used in determining these asset values to ensure a clear understanding of the reported figures.