What was the financing cash flow from finance leases for Precision Door Service in 2022?
Precision_Door_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
------------------------------------------------|------|------| | Weighted average remaining lease term (in years): | | | | Operating leases | 5.2 | 5.6 | | Finance leases | 3.2 | 2.7 | | Weighted average discount rate: | | | | Operating leases | 3.4% | 3.1% | | Finance leases | 6.1% | 6.0% |
Notes to Consolidated Financial Statements ($000's)
Other information related to leases, including supplemental disclosures of cash flow information, is as follows (in thousands):
| For the years ending December 31, | 2023 | 2
Source: Item 21 — Financial Statements (FDD page 91)
What This Means (2025 FDD)
According to Precision Door Service's 2025 Franchise Disclosure Document, the financing cash flows from finance leases in 2022 amounted to $1,773. This figure represents the cash flow related to Precision Door Service's financial lease obligations during that year.
For a prospective franchisee, understanding the financing cash flows from finance leases is crucial as it reflects the company's obligations and financial management related to leased assets. These assets, as detailed in the notes, primarily consist of vehicles under financing lease agreements, which expire at various dates through 2027. The cash flow figure indicates the payments made towards these leases during the specified period.
This information is valuable for potential franchisees as it provides insight into Precision Door Service's financial strategies concerning asset acquisition and management. By examining these figures, franchisees can assess the company's approach to leasing versus purchasing assets, and how these decisions impact cash flow. It's also important to note that the company adopted ASC 842 effective January 1, 2022, which governs lease accounting and may influence how these figures are reported and interpreted.