Frontdoor Inc (FTDR)
Number of days of payables
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 11.78 | 11.90 | 12.39 | 13.78 | 14.31 | |
| Number of days of payables | days | 30.99 | 30.67 | 29.45 | 26.48 | 25.50 |
December 31, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 11.78
= 30.99
The number of days of payables for Frontdoor Inc. has shown a generally increasing trend over the past five years. In 2019, the company took an average of 25.50 days to pay its suppliers, which increased to 26.48 days in 2020. This trend continued with a further increase to 29.45 days in 2021 and 30.67 days in 2022.
Notably, in 2023, the number of days of payables increased to 30.99 days, indicating that Frontdoor Inc. is taking almost a month on average to settle its accounts payable. This suggests that the company may be taking longer to pay its suppliers, potentially signaling a change in its payment practices or liquidity management strategies.
Overall, the increasing trend in the number of days of payables for Frontdoor Inc. could have implications for the company's cash flow management, vendor relationships, and working capital efficiency. Further analysis of the company's financial health and operational performance may provide additional insights into the reasons behind this trend and its potential impact on the business.
Peer comparison
Dec 31, 2023