What was the total vehicle debt for Dollar Rent A Car as of December 31, 2023?
Dollar_Rent_A_Car Franchise · 2025 FDDAnswer from 2025 FDD Document
| ember 31, 2024 | Dec | ember 31, 2023 | |
|---|---|---|---|
| ASSETS | |||
| Cash and cash equivalents | $ 591 | $ | 764 |
| Restricted cash and cash equivalents: | |||
| Vehicle | 258 | 152 | |
| Non-vehicle | 283 | 290 | |
| Total restricted cash and cash equivalents | 541 | 442 | |
| Total cash and cash equivalents and restricted cash and cash equivalents | 1,132 | 1,206 | |
| Receivables: | |||
| Vehicle | 389 | 211 | |
| Non-vehicle, net of allowance of $58 and $47, respectively | 816 | 980 | |
| Total receivables, net | 1,205 | 1,191 | |
| Prepaid expenses and other assets | 894 | 725 | |
| Revenue earning vehicles: | |||
| Vehicles | 12,714 | 16,806 | |
| Less: accumulated depreciation | (751) | (2,155) | |
| Total revenue earning vehicles, net | 11,963 | 14,651 | |
| Property and equipment, net | 623 | 671 | |
| Operating lease right-of-use assets | 2,088 | 2,253 | |
| Intangible assets, net | 2,852 | 2,863 | |
| Goodwill | 1,044 | 1,044 | |
| Total assets (1) | $ 21,801 | $ | 24,604 |
| LIABILITIES AND STOCKHOLDER'S EQUITY | |||
| Accounts payable: | |||
| Vehicle | $ 161 | $ | 191 |
| Non-vehicle Non-vehicle | 481 | 510 | |
| Total accounts payable | 642 | 701 | |
| Accrued liabilities | 1,174 | 860 | |
| Accrued taxes, net | 158 | 155 | |
| Debt: | |||
| Vehicle | 11,231 | 12,242 | |
| Non-vehicle | 5,104 | 3,449 | |
| Total debt | 16,335 | 15,691 |
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 company's total vehicle debt as of December 31, 2023, was $12,242 million. This figure is a significant indicator of the financial leverage Dollar Rent A Car employs to operate its vehicle rental business.
Vehicle debt is a common financial obligation for car rental companies like Dollar Rent A Car, as it reflects the financing used to acquire and maintain their fleet of vehicles. This debt is typically secured by the vehicles themselves through various credit facilities and securitization programs. The level of vehicle debt can impact the company's financial flexibility and profitability, as interest payments and principal repayments must be factored into their operating expenses.
For a prospective franchisee, understanding the vehicle debt of Dollar Rent A Car is crucial because it provides insight into the financial stability and risk profile of the company. While a high level of debt isn't necessarily negative, it's important to assess how the company manages this debt and whether it impacts their ability to support franchisees or invest in the business. Reviewing the various debt facilities and their terms, as outlined in the FDD, can offer a more detailed understanding of the company's financial structure.
It is important to note that the FDD also lists other debts, such as non-vehicle debt. When evaluating the overall financial health of Dollar Rent A Car, a prospective franchisee should consider the total debt, including both vehicle and non-vehicle debt, in relation to the company's assets and earnings.