Frontdoor Inc (FTDR)
Fixed asset turnover
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 1,780,000 | 1,754,000 | 1,714,000 | 1,678,000 | 1,662,000 | 1,661,000 | 1,648,000 | 1,623,000 | 1,601,000 | 1,585,000 | 1,554,000 | 1,509,000 | 1,474,000 | 1,451,000 | 1,418,000 | 1,389,000 | 1,366,000 | 1,345,000 | 1,315,000 |
| Property, plant and equipment | US$ in thousands | 60,000 | 64,000 | 66,000 | 66,000 | 66,000 | 64,000 | 66,000 | 68,000 | 66,000 | 64,000 | 62,000 | 61,000 | 60,000 | 62,000 | 59,000 | 55,000 | 51,000 | 49,000 | 49,000 |
| Fixed asset turnover | 29.67 | 27.41 | 25.97 | 25.42 | 25.18 | 25.95 | 24.97 | 23.87 | 24.26 | 24.77 | 25.06 | 24.74 | 24.57 | 23.40 | 24.03 | 25.25 | 26.78 | 27.45 | 26.84 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $1,780,000K ÷ $60,000K
= 29.67
Frontdoor Inc.'s fixed asset turnover ratio has exhibited a consistent upward trend over the past eight quarters, indicating the company's efficient utilization of its fixed assets to generate sales revenue. The fixed asset turnover ratio measures how effectively a company is generating revenue from its investment in fixed assets such as property, plant, and equipment.
The increasing trend in the fixed asset turnover ratio suggests that Frontdoor Inc. has been able to generate a higher level of sales relative to its investment in fixed assets over time. This efficiency can be attributed to better asset management practices, operational improvements, and potentially increased sales volumes without proportionate increases in fixed asset investments.
In the most recent quarter, Q4 2023, Frontdoor Inc. achieved a fixed asset turnover ratio of 29.67, indicating that the company generated $29.67 in sales for every dollar invested in fixed assets during that period. This signifies a strong performance in efficiently utilizing its fixed assets.
Overall, the trend of increasing fixed asset turnover ratios for Frontdoor Inc. reflects positively on the company's operational efficiency and ability to maximize the output from its fixed asset base to drive revenue growth.
Peer comparison
Dec 31, 2023