What was the amount of depreciation for Kidokinetics in 2022?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
| Leasehold improvements | $ | 61,427 | $ 61,427 | $ | 56,987 | |
|---|---|---|---|---|---|---|
| Less: accumulated depreciation | (24,700) | (13,300 | (1,900) | |||
| $ | 36,727 | $ 48,127 | $ | 55,087 |
Depreciation expense for the years ended December 31, 2023, 2022, and 2021 was $11,400, $11,400, and $1
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, the depreciation expense for the year ending December 31, 2022, was $11,400. This figure reflects the accounting recognition of the reduction in value of Kidokinetics's assets over that year. Depreciation is a non-cash expense that impacts the company's net income.
For a prospective franchisee, understanding depreciation expense can be important for assessing the financial health and stability of Kidokinetics. While franchisees do not directly incur this expense at the franchisor level, it provides insight into how the franchisor manages its assets and overall profitability. Consistent depreciation expenses might indicate stable asset management practices.
It's also worth noting that depreciation can affect various financial metrics and ratios used to evaluate a company's performance. Franchisees may want to compare these figures over several years to identify trends and potential areas of concern or strength. This information, combined with other financial data, can help potential franchisees make a more informed decision about investing in a Kidokinetics franchise.