What were the changes in non-vehicle receivables for Dollar Rent A Car in 2022?
Dollar_Rent_A_Car Franchise · 2025 FDDAnswer from 2025 FDD Document
Dividends paid to Hertz Holdings | | | (7) | | | (7) | | December 31, 2024 | 100 | $ | $ 4,598 | $ (3,956) | $ (316) | $ 326 |
(1) See "Share Repurchase Programs for Common Stock" in Note 17, "Equity and Earnings (Loss) Per Common Share – Hertz Global," for additional information.
(2) Represents former CEO awards forfeited in March 2024. See also Note 9, "Stock-Based Compensation."
THE HERTZ CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions)
| Years Ended December 31, | |||||
|---|---|---|---|---|---|
| 2024 | 2023 | 2022 | |||
| Cash flows from operating activities: | |||||
| Net income (loss) | $ (3,137) $ | 452 | $ 1,355 | ||
| Adjustments to reconcile net income (loss) to net cash provided by (used in) | |||||
| operating activities: | |||||
| Depreciation and reserves for revenue earning vehicles, net | 3,983 | 2,422 | 809 | ||
| Depreciation and amortization, non-vehicle | 139 | 149 | 142 | ||
| Amortization of deferred financing costs and debt discount (premium) | 74 | 61 | 53 | ||
| Stock-based compensation charges | 63 | 87 | 130 | ||
| Stock-based compensation forfeitures | (68) | — | — | ||
| Provision for receivables allowance | 120 | 93 | 57 | ||
| Deferred income taxes, net | (459) | (380) | 301 | ||
| Long-Lived Assets impairment | 1,048 | — | — | ||
| (Gain) loss on sale of non-vehicle capital assets | 3 | (162) | (5) | ||
| Changes in financial instruments | 7 | 117 | (111) | ||
| Other | (30) | 5 | 11 | ||
| Changes in assets and liabilities: | |||||
| Non-vehicle receivables | 23 | (216) | (264) | ||
| Prepaid expenses and other assets | 8 | (39) | (126) | ||
| Operating lease right-of-use assets | 386 | 365 | 280 | ||
| Non-vehicle accounts payable | (14) | (48) | 43 | ||
| Accrued liabilities | 324 | (39) | 80 | ||
| Accrued taxes, net | 21 | 1 | 73 | ||
| Operating lease liabilities | (417) | (391) | (309) | ||
| Self-insured liabilities | 152 | (6) | 19 | ||
| Net cash provided by (used in) operating activities | 2,226 | 2,471 | 2,538 | ||
| Cash flows from investing activities: | |||||
| Revenue earning vehicles expenditures | (10,524) | (9,514) | (10,596) | ||
| Proceeds from disposal of revenue earning vehicles | 7,678 | 5,498 | 6,498 | ||
| Non-vehicle capital asset expenditures | (105) | (188) | (150) | ||
| Proceeds from disposal of non-vehicle capital assets | 23 | 181 | 12 | ||
| Collateral returned in exchange for letters of credit | — | — | 19 | ||
| Return of (investment in) equity investments | (1) | (1) | (16) | ||
| Net cash provided by (used in) investing activities | (2,929) | (4,024) | (4,233) | ||
| Cash flows from financing activities: | |||||
| Proceeds from issuance of vehicle debt | 3,873 | 6,043 | 9,672 | ||
| Repayments of vehicle debt | (4,827) | (4,837) | (6,639) | ||
| Proceeds from issuance of non-vehicle debt | 4,646 | 2,490 | — | ||
| Repayments of non-vehicle debt | (2,966) | (2,018) |
Source: Item 23 — RECEIPTS (FDD pages 102–301)
What This Means (2025 FDD)
According to Dollar Rent A Car's 2025 Franchise Disclosure Document, the changes in non-vehicle receivables for 2022 are reflected in the cash flow statement. Specifically, the document indicates a decrease of $264 million in non-vehicle receivables during the year ended December 31, 2022. This figure is part of the broader section detailing cash flows from operating activities.
This decrease in non-vehicle receivables suggests that Dollar Rent A Car collected more of its outstanding non-vehicle debts than it did in the previous year. This could be due to more efficient collection processes, changes in payment terms, or other factors affecting the company's accounts receivable. For a franchisee, understanding these trends can provide insight into the financial management and operational efficiency of the company.
It's important to note that this change is part of a larger financial picture, and should be considered alongside other factors such as net income, depreciation, and overall cash flow. A prospective franchisee should investigate the reasons behind this change and how it impacts the overall financial health of Dollar Rent A Car.