What was the total stockholders' equity for Management Recruiters at the end of December 31, 2020?
Management_Recruiters Franchise · 2024 FDDAnswer from 2024 FDD Document
ireQuest, Inc. Consolidated Statement of Changes in Stockholders**' Equity
| | Common stock | | Treasury Stock | Additional paid-in | Retained | Total stockholders' | |-----------------------------------------|--------------|--------------|--------------------|-----------------------|------------------|------------------------| | | Shares | Par value | Amount | capital | earnings | equity | | Balance at December 31, 2019 | 13,518,036 | $ 13,518 | $ - | $ 27,584,610 | $ 3,683,954 | $ 31,282,082 | | Stock-based compensation | - | - | - | 1,226,890 | - | 1,226,890 | | Cash dividends | - | - | - | - | (1,357,648) | (1,357,648) | | Restricted common stock granted for | | | | | | | | services | 110,639 | 111 | - | (111) | - | - | | Purchase of treasury stock | - | - | (146,465) | - | - | (146,465) | | Net income | - | - | - | - | 5,359,414 | 5,359,414 | | Balance at December 31, 2020 | 13,628,675 | 13,629 | (146,465) | 28,811,389 | 7,685,720 | 36,364,273 | | Stock-based compensation | - | - | - | 1,627,718 | - | 1,627,718 | | Cash dividends | - | - | - | - | (3,140,600) | (3,140,600) | | Restricted common stock granted for | | | | | | | | services | 112,255 | 112 | - | - | - | 112 | | Common stock issued for the exercise of | | | | | | | | options | 4,166 | 4 | - | 33,490 | - | 33,494 | | Net income | - | - | - | - | 11,849,934 | 11,849,934 | | Balance at December 31, 2021 | 13,745,096 | $ 13,745 | $ (146,465) $ | 30,472,597 | $ 16,395,054 | $ 46,734,931 |
**HireQuest, Inc.
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 65–66)
What This Means (2024 FDD)
According to Management Recruiters' 2024 Franchise Disclosure Document, the total stockholders' equity at the end of December 31, 2020, was $36,364,273. This figure represents the sum of common stock, treasury stock, additional paid-in capital, and retained earnings. It reflects the ownership value held by the stockholders in the company at that specific point in time.
For a prospective franchisee, this number provides insight into the financial health and stability of Management Recruiters. A higher stockholders' equity generally indicates a stronger financial position, suggesting that the company has more assets than liabilities. This can be reassuring for franchisees who are considering investing in the brand, as it implies that Management Recruiters has a solid financial foundation to support its operations and growth.
It's important to note that this figure is just one data point and should be considered alongside other financial metrics and qualitative factors when evaluating the franchise opportunity. While a healthy stockholders' equity is a positive sign, prospective franchisees should also assess the company's revenue trends, profitability, debt levels, and overall business strategy to gain a comprehensive understanding of its financial performance and future prospects.