What was the total value of current assets for Moes Southwest Grill in 2024?
Moes_Southwest_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
audit in accordance with US GAAS, we:
- Exercise professional judgment and maintain professional skepticism throughout the audit.
- Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements.
- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Comp
Source: Item 23 — Receipts (FDD pages 92–334)
What This Means (2025 FDD)
According to Moe's Southwest Grill's 2025 Franchise Disclosure Document, the total current assets for the company as of December 29, 2024, were $115,063. This figure represents the sum of various liquid assets that the company could readily convert into cash within a year. These assets include cash and cash equivalents, restricted cash, accounts receivable (net of allowance for credit losses), inventories, prepaid expenses, advertising funds assets, and intercompany receivables from the parent company.
Understanding the composition of these current assets is crucial for prospective franchisees. For instance, a significant portion of accounts receivable suggests that Moe's Southwest Grill relies on payments from franchisees, vendors, and licensees. Prepaid expenses typically cover items like insurance and vendor deposits, indicating the company's operational obligations. The level of cash and cash equivalents reflects the company's immediate liquidity and ability to meet short-term obligations.
It is also useful to compare the 2024 figure with the corresponding value from the previous year. The FDD states that the total current assets as of December 31, 2023, were $110,454. This shows an increase in total current assets from 2023 to 2024. Reviewing these figures over several years can reveal trends in the company's financial health and working capital management, providing valuable insights for potential investors.