Frontdoor Inc (FTDR)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,780,000 | 1,662,000 | 1,602,000 | 1,474,000 | 1,365,000 |
| Property, plant and equipment | US$ in thousands | 60,000 | 66,000 | 66,000 | 60,000 | 51,000 |
| Fixed asset turnover | 29.67 | 25.18 | 24.27 | 24.57 | 26.76 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,780,000K ÷ $60,000K
= 29.67
Fixed asset turnover measures the efficiency with which a company generates revenue from its investment in fixed assets. A higher ratio indicates that the company is using its fixed assets more effectively to generate sales.
Frontdoor Inc.'s fixed asset turnover has shown a positive trend over the past five years, increasing from 26.76 in 2019 to 29.67 in 2023. This suggests that Frontdoor Inc. has been able to generate more sales relative to its investment in fixed assets.
The consistent improvement in fixed asset turnover indicates that the company has been able to optimize the utilization of its fixed assets to drive revenue growth. This could be attributed to better asset management practices, operational efficiency, or strategic investments in fixed assets that have contributed to increased revenue generation.
Overall, the increasing trend in Frontdoor Inc.'s fixed asset turnover reflects positively on the company's ability to efficiently utilize its fixed assets to drive sales and indicates a positive trajectory for the company's operational performance.
Peer comparison
Dec 31, 2023