Frontdoor Inc (FTDR)

Short-term

Turnover ratios

Frontdoor Inc's inventory turnover has shown some fluctuation over the periods provided, with a significant increase from March 31, 2021, to June 30, 2022, and then a slight decrease by September 30, 2022.

Receivables turnover remained unavailable for analysis as the data was not provided for any of the periods.

Payables turnover data was also not available for analysis across the periods provided.

In terms of working capital turnover, there was a notable decrease in the ratio from June 30, 2020, to December 31, 2020. Subsequently, there was an increase observed from March 31, 2020, to June 30, 2023, followed by fluctuations in the ratio until December 31, 2024.

Overall, it is essential for Frontdoor Inc to effectively manage its inventory turnover and working capital turnover ratios to optimize its operational efficiency and liquidity position in the future.

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Average number of days

Days of Inventory on Hand (DOH):

Over the past few quarters, Frontdoor Inc's DOH ratio has shown some fluctuations. As of June 2022, the company held inventory for around 9.41 days, which increased to 10.71 days by September 2022. These values indicate the number of days the company holds inventory before it is sold. A lower DOH is generally preferable as it signifies efficient inventory management, reducing carrying costs and the risk of obsolescence.

Days of Sales Outstanding (DSO):

Frontdoor Inc's DSO ratio has not been provided in the data, indicating a lack of information to assess how many days it takes the company to collect its accounts receivable. This ratio is important as a lower DSO implies quicker collection of outstanding invoices, improving cash flow and liquidity.

Number of Days of Payables:

Similar to DSO, the data on the number of days of payables for Frontdoor Inc is not available for analysis. This ratio would provide insights into how long the company takes to pay its outstanding invoices to suppliers. A longer payable period can indicate better cash flow management but may also strain supplier relationships if stretched too far.

Overall, while the DOH ratios suggest fluctuations in inventory holding periods, the lack of data for DSO and payables hinders a comprehensive assessment of Frontdoor Inc's activity ratios and efficiency in managing working capital. More information would be needed to provide a complete picture of the company's financial operations.

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Long-term

Frontdoor Inc's Fixed Asset Turnover ratio, which measures how efficiently the company is using its fixed assets to generate revenue, shows a fluctuating trend over the analyzed period. Starting at a high of 20.13 in March 2020, it decreased to 19.19 in June 2021, before rebounding to 25.97 in September 2022. The ratio remained relatively stable around the mid-20s range from September 2022 to June 2023, indicating consistent efficiency in utilizing fixed assets.

On the other hand, the Total Asset Turnover ratio, reflecting the company's overall efficiency in generating sales from its total assets, exhibited a more consistent increase from 1.08 in March 2020 to 1.63 in December 2023. This upward trend suggests that Frontdoor Inc effectively utilized its total assets to generate higher sales over the analyzed period.

In December 2024, the Total Asset Turnover ratio dropped significantly to 0.87, indicating a potential decline in the company's ability to generate sales relative to its total assets. This abrupt decrease may warrant further investigation to understand the factors contributing to this decline and assess the company's overall operational efficiency.

Overall, while the Fixed Asset Turnover ratio fluctuated, indicating varying efficiency in utilizing fixed assets, the Total Asset Turnover ratio showed a general increasing trend, suggesting improved effectiveness in generating sales from the company's total asset base.