What was the value of Petro Stopping Center's derivative financial instruments (non-current assets) in 2023?
Petro_Stopping_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
| At December 31 | Note | 2024 | $ million 2023 |
|---|---|---|---|
| Non-current assets | |||
| Derivative financial instruments | 25 | 13,680 | 8,337 |
Source: Item 23 — RECEIPTS **RECEIPTS (FDD pages 87–131)
What This Means (2025 FDD)
According to Petro Stopping Center's 2025 Franchise Disclosure Document, the value of its derivative financial instruments, classified as non-current assets, was $8,337 million in 2023.
Derivative financial instruments are contracts whose value is derived from an underlying asset, index, or rate, such as commodities, interest rates, or exchange rates. These instruments can be used to manage risks associated with fluctuations in these underlying factors. For Petro Stopping Center, these derivatives likely play a role in hedging against market volatility in areas such as fuel prices or interest rates on borrowings.
The fact that Petro Stopping Center holds a substantial value in derivative financial instruments as non-current assets suggests that these instruments are a significant part of its financial strategy. Potential franchisees should be aware that understanding how Petro Stopping Center manages its financial risks through these instruments could be important for assessing the overall financial health and stability of the franchise system.