What was the net cash used by operating activities for Southern Steer?

According to Southern Steer's 2025 Franchise Disclosure Document, the net cash used by operating activities as of September 30, 2022, was a negative $221,710. This figure indicates the total cash outflow resulting from the company's core business operations during that fiscal year. It takes into account the net loss of $100,797 and adjustments to reconcile net income to net cash provided by operating activities, which totaled a negative $120,913.

These adjustments include non-cash items such as amortization expense ($2,678), as well as changes in operating assets and liabilities. Significant changes in operating assets include an increase in accounts receivable ($2,256) and a decrease in other current assets ($102,911). Changes in operating liabilities include increases in accounts payable ($12,320), decreases in the line of credit ($34,723), and decreases in payroll liabilities ($533).

For a prospective franchisee, a negative cash flow from operations suggests that Southern Steer was not generating enough cash from its business activities to cover its operating expenses during the period examined. While this may raise concerns, it is important to consider this figure in the context of the company's overall financial health, including its financing activities and cash reserves. In the same period, Southern Steer had an increase in member contribution of $675,000, resulting in net cash provided by financing activities of $650,000. The change in cash and cash equivalents was $428,290, and the cash and cash equivalents as of September 30, 2022, totaled $427,950.

It is also important to note that this data is from 2022, and the company's financial situation may have changed since then. A potential franchisee should investigate more recent financial statements and ask Southern Steer about the factors contributing to the negative cash flow from operations and what steps the company is taking to improve it.