What was the total stockholder's equity for Precision Door Service as of December 31, 2023?
Precision_Door_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
| As of December 31, | 2023 | 2022 |
|---|---|---|
| Liabilities and 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, 2023, was $1,568,074. 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. However, it's important to consider this figure in conjunction with other financial metrics and industry benchmarks to get a comprehensive understanding of the company's financial performance.
The FDD also shows the stockholder's equity as of December 31, 2022, was $2,318,889. The decrease in stockholder's equity from 2022 to 2023 could be due to various factors, such as net losses, distributions to the parent company, or other adjustments to equity accounts. A potential franchisee should investigate the reasons for this change to fully understand the company's financial trends.
It is important to note that the FDD presents a snapshot of the company's financials at a specific point in time. Prospective franchisees should review the complete financial statements and consult with a financial advisor to assess the long-term financial viability of Precision Door Service and understand the implications for their investment.