What were the changes in prepaid expenses and other assets for Dollar Rent A Car in 2023?
Dollar_Rent_A_Car Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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 |
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 prepaid expenses and other assets can be found within the cash flow statement. In 2023, there was a decrease of $39 million in prepaid expenses and other assets.
This change is part of the broader reconciliation of net income (loss) to net cash provided by (used in) operating activities. It reflects how Dollar Rent A Car's accounting adjustments and changes in balance sheet accounts impact their overall cash flow from operations.
For a prospective Dollar Rent A Car franchisee, understanding these changes is crucial for assessing the company's financial health and cash management practices. Prepaid expenses typically include items paid for in advance, such as insurance or rent, while other assets can encompass a variety of items like deferred charges or deposits. A decrease in these assets could indicate a more efficient use of resources or changes in operational strategies. Reviewing these figures over several years, as presented in the table, provides a clearer picture of trends and potential impacts on the franchisee's investment.