What was the total stockholder's equity for Precision Door Service as of December 31, 2022?
Precision_Door_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
| As of December 31, | 2023 | 2022 |
|---|---|---|
| Liabilities and Stockholder's Equity | ||
| Stockholder's equity | - | - |
| Common stock-par value $0.01 per share; 100 shares | ||
| authorized, issued and outstanding | ||
| Additional paid-in capital | 2,100,435 | 2,420,959 |
| Accumulated deficit | (489,405) | (50,587) |
| Accumulated other comprehensive loss | (42,956) | (51,483) |
| Total stockholder's equity | 1,568,074 | 2,318,889 |
Source: Item 21 — Financial Statements (FDD page 91)
What This Means (2025 FDD)
According to Precision Door Service's 2025 Franchise Disclosure Document, the total stockholder's equity as of December 31, 2022, was $2,318,889. This figure represents the net worth of the company from the perspective of its stockholders, calculated by subtracting total liabilities from total assets. It includes common stock, additional paid-in capital, accumulated deficit, and accumulated other comprehensive loss.
For a prospective franchisee, this number provides insight into the financial stability and overall health of Precision Door Service. A higher stockholder's equity generally indicates a stronger financial position, suggesting the company has sufficient assets to cover its liabilities. This can be reassuring for franchisees who are considering investing in the brand, as it implies a lower risk of financial distress for the franchisor.
However, it's important to consider this figure in conjunction with other financial metrics and industry benchmarks. While a substantial stockholder's equity is a positive sign, franchisees should also review the company's revenue, profitability, and debt levels to gain a comprehensive understanding of its financial performance. Additionally, comparing Precision Door Service's stockholder's equity to that of its competitors can provide valuable context.
Furthermore, the FDD also notes adjustments that impacted the financial statements as of December 31, 2022. Specifically, an adjustment of $28,201 increased Total Member's Equity due to a correction related to the Loss on impairment of goodwill. While this adjustment is relatively small compared to the overall stockholder's equity, it highlights the importance of reviewing the footnotes and disclosures in the financial statements to understand any unusual items or accounting adjustments that may affect the reported figures.