Frontdoor Inc (FTDR)
Payables 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 895,000 | 901,000 | 919,000 | 942,000 | 952,000 | 956,000 | 899,000 | 843,000 | 817,000 | 804,000 | 812,000 | 791,000 | 757,000 | 732,000 | 708,000 | 692,000 | 688,000 | 682,000 | 682,000 |
| Payables | US$ in thousands | 76,000 | 87,000 | 78,000 | 82,000 | 80,000 | 89,000 | 96,000 | 73,000 | 66,000 | 76,000 | 82,000 | 66,000 | 55,000 | 69,000 | 74,000 | 55,000 | 48,000 | 55,000 | 58,000 |
| Payables turnover | 11.78 | 10.36 | 11.78 | 11.49 | 11.90 | 10.74 | 9.36 | 11.55 | 12.38 | 10.58 | 9.90 | 11.98 | 13.76 | 10.61 | 9.57 | 12.58 | 14.33 | 12.40 | 11.76 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $895,000K ÷ $76,000K
= 11.78
The payables turnover ratio measures how efficiently a company is managing its accounts payable by comparing its average accounts payable to the cost of goods sold. In the case of Frontdoor Inc., the payables turnover ratios have fluctuated over the past eight quarters.
In Q4 2023, the payables turnover ratio was 11.78, indicating that Frontdoor Inc. converted its accounts payable into purchases almost 12 times during the quarter. This suggests that the company is efficiently managing its payables by paying suppliers promptly.
Comparing this to the previous quarters, there has been variability in the payables turnover ratio. In Q3 2023, the ratio decreased to 10.36 before increasing back to 11.78 in Q2 2023. The ratio was relatively stable in the previous quarters of 2022, ranging from 9.36 to 11.90.
Overall, Frontdoor Inc.'s payables turnover ratio has shown a general trend of fluctuation, with some quarters indicating a higher efficiency in managing accounts payable compared to others. Further analysis of the company's payment practices and the industry benchmarks would provide more insight into the effectiveness of Frontdoor Inc.'s payables management.
Peer comparison
Dec 31, 2023