What was the net cash provided by operating activities for Eos Worldwide in 2022?
Eos_Worldwide Franchise · 2025 FDDAnswer from 2025 FDD Document
00,000 1,045,384 1,545,384 2,743,127 (3,500,000) Net income Member's distribution 2,743,127 (3,500,000) Balance, December 31, 2022 (3,000,000) 3,788,511 788,511 Net income Member's distribution 1,346,431 (715,000) 1,346,431 (715,000) Balance, December 31, 2023 $ (3,715,000) $ 5,134,942 1,419,942
Statements of Cash Flows Years Ended December 31, 2023 and 2022
| 2023 | 2022 | |||
|---|---|---|---|---|
| Cash flows from operating activities: | ||||
| Net income | $ | 1,346,431 | $ | 2,743,127 |
| Adjustments to reconcile net income to net cash provided by | ||||
| operating activities: | ||||
| (Increase) decrease in assets: | ||||
| Due from affiliates | (1,016,647) | (481,969) | ||
| Increase (decrease) in liabilities: | ||||
| Deferred revenue | 926,157 | 1,176,616 | ||
| Net cash provided by operating activities | 1,255,941 | 3,437,774 | ||
| Cash flows from financing activities: | ||||
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Source: Item 22 — CONTRACTS (FDD page 74)
What This Means (2025 FDD)
According to Eos Worldwide's 2025 Franchise Disclosure Document, the net cash provided by operating activities in 2022 was $3,437,774. This indicates the amount of cash Eos Worldwide generated from its normal business operations during that year.
For a prospective franchisee, understanding the net cash provided by operating activities can be useful in evaluating the financial health and stability of Eos Worldwide. A positive number suggests that the company is effectively generating cash from its core business activities, which can be a sign of a sustainable business model. This figure is derived by adjusting net income to account for non-cash transactions and changes in working capital.
However, it's important to consider this figure in conjunction with other financial metrics and trends. For example, a franchisee should compare the 2022 figure to those of other years to assess whether the company's cash flow from operations is consistent or fluctuating. Additionally, it would be prudent to investigate the specific factors that contributed to this cash flow, such as changes in revenue, expenses, or working capital management. This information, combined with other due diligence, can help a potential franchisee make a more informed decision about investing in an Eos Worldwide franchise.
It is also important to note that past performance does not guarantee future results. While a strong history of positive cash flow from operations is a positive indicator, prospective franchisees should also consider current market conditions, industry trends, and the company's strategic plans when evaluating the financial viability of the franchise opportunity.