Frontdoor Inc (FTDR)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | — | — | — | 34.12 | — |
| Receivables turnover | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | 15.49 | 55.62 | — | — | 6.61 |
Frontdoor Inc's activity ratios provide insight into how efficiently the company manages its assets and liabilities to generate revenue.
1. Inventory Turnover: In 2021, Frontdoor Inc achieved an inventory turnover of 34.12, indicating that the company effectively sold and replaced its inventory 34.12 times during the year.
2. Receivables Turnover: There is no data available for receivables turnover for Frontdoor Inc from 2020 to 2024, suggesting a lack of information on how quickly the company collects outstanding receivables from its customers.
3. Payables Turnover: There is no data available for payables turnover for Frontdoor Inc from 2020 to 2024, indicating a lack of information on how efficiently the company manages its payables.
4. Working Capital Turnover: Frontdoor Inc's working capital turnover was 6.61 in 2020, 55.62 in 2023, and 15.49 in 2024. A higher working capital turnover ratio indicates effective utilization of working capital to generate sales revenue.
Overall, while the company's inventory turnover and working capital turnover ratios show efficient management of inventory and working capital, the lack of data for receivables and payables turnover restricts a comprehensive analysis of Frontdoor Inc's overall activity management.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | 10.70 | — |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
Based on the data provided, Frontdoor Inc's Days of Inventory on Hand (DOH) as of December 31, 2021, was 10.70 days. This ratio indicates that Frontdoor Inc takes approximately 10.70 days to sell its inventory. A lower DOH value generally suggests efficient inventory management.
Frontdoor Inc's Days of Sales Outstanding (DSO) data is not available for the years provided. DSO shows the average number of days it takes for the company to collect its accounts receivable. A lower DSO value is preferable as it signifies a faster collection process and better liquidity.
The Number of Days of Payables data for Frontdoor Inc is also not available for the years provided. This ratio indicates the average number of days it takes for the company to pay its suppliers. A higher number of days of payables could indicate that the company is taking longer to pay its bills, possibly benefiting from a longer credit period.
Overall, the analysis of activity ratios for Frontdoor Inc indicates its efficiency in managing inventory, collecting receivables, and paying its suppliers. Absence of data for DSO and number of days of payables limits a comprehensive assessment of the company's working capital management.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | — | 25.18 | 24.27 | 24.57 |
| Total asset turnover | 0.87 | 1.63 | 1.54 | 1.50 | 1.05 |
The fixed asset turnover ratio for Frontdoor Inc has remained relatively stable over the years, ranging from 24.27 to 25.18. This indicates that the company generates a high level of revenue compared to its investment in fixed assets, showcasing efficient utilization of fixed assets to generate sales.
On the other hand, the total asset turnover ratio has shown more variability, increasing from 1.05 in 2020 to 1.63 in 2023 before dropping to 0.87 in 2024. This suggests that the company's ability to generate sales from its total assets improved significantly until 2023 but experienced a decline in 2024.
Overall, while the fixed asset turnover suggests efficient use of fixed assets to drive sales, the fluctuating total asset turnover indicates a more mixed performance in utilizing all assets to generate revenue. Further analysis of operational and strategic factors impacting these ratios would be needed to fully understand Frontdoor Inc's long-term activity efficiency.