What was the change in inventories for Precision Door Service in 2024?
Precision_Door_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
audit findings, and certain internal control-related matters that we identified during the audit.
Dallas, Texas March 31, 2025
Combined Balance Sheets ($000's)
| As of December 31, | 2024 | 2023 |
|---|---|---|
| Assets | ||
| Current assets Cash Restricted Cash Trade accounts receivable - net Trade notes receivable, current portion |
Source: Item 21 — Financial Statements (FDD page 91)
What This Means (2025 FDD)
According to Precision Door Service's 2025 Franchise Disclosure Document, the value of inventories increased from 2023 to 2024. Specifically, the value of inventories was $989,000 as of December 31, 2023, and increased to $1,783,000 as of December 31, 2024. This represents an increase of $794,000 in inventories year-over-year.
For a prospective franchisee, this increase in inventory value could suggest a few things. It may indicate Precision Door Service is stocking more products in anticipation of increased sales, or it could reflect an accumulation of unsold inventory. Understanding the reasons behind this change would be a prudent question for a potential franchisee to ask the franchisor.
It's important to note that inventories consist of products to be sold and are valued at the lower of cost (using the first-in, first-out method) or net realizable value. This valuation method is a standard accounting practice. The financial statements are presented in thousands of dollars, as indicated by the heading "Notes to Consolidated Financial Statements ($000's)."