What was the total shareholders' equity for Engel & Volkers in 2023?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | |||||
|---|---|---|---|---|---|---|
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||
| Shareholders' | ||||||
| equity: | ||||||
| Common stock - $10 par value; 100,000 shares authorized, | ||||||
| 17,143 shares issued and outstanding | 171,430 | 171,430 | ||||
| Additional paid-in capital | 34,285,342 | 34,285,342 | ||||
| Accumulated deficit | (17,638,174) | (13,590,074) | ||||
| Accumulated other comprehensive loss | (173,649) | (32,377) | ||||
| Total shareholders' | 16,644,949 | 20,834,321 | ||||
| equity |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, the consolidated balance sheets show the company's total shareholders' equity in 2023 was $20,834,321. This figure represents the net worth of Engel & Volkers as of the end of that year, reflecting the cumulative investments of shareholders and retained earnings, minus any accumulated losses. This number is derived from several components, including common stock, additional paid-in capital, accumulated deficit, and accumulated other comprehensive loss.
Specifically, the balance sheet details the components contributing to the total shareholders' equity. Engel & Volkers had common stock valued at $171,430, and additional paid-in capital of $34,285,342. However, the company also reported an accumulated deficit of $(13,590,074) and an accumulated other comprehensive loss of $(32,377). The accumulated deficit indicates that the company's past losses have exceeded its profits, reducing the overall equity. The accumulated other comprehensive loss captures changes in equity that bypass the income statement, such as unrealized gains or losses on certain investments.
For a prospective franchisee, this information provides insight into the financial stability and overall health of Engel & Volkers. A substantial shareholders' equity generally indicates a strong financial foundation, which can be reassuring for franchisees who are considering investing in the brand. However, it's also important to consider the components of the equity, such as the accumulated deficit, to gain a more nuanced understanding of the company's financial history and performance. Reviewing these figures in comparison to previous years and industry benchmarks can offer a more comprehensive assessment of the franchise's financial standing.