Frontdoor Inc (FTDR)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | — | — | — | — | — | 32.97 | 37.46 | — | — | — | — | 26.37 | — | — | — | — | — | — | — |
| Receivables turnover | 296.67 | 250.57 | 285.67 | 279.67 | 332.40 | 415.25 | 274.67 | 324.60 | 228.71 | 317.00 | 310.80 | 377.25 | 294.80 | 145.10 | 157.56 | 173.62 | 124.18 | 168.12 | 146.11 |
| 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 |
| Working capital turnover | 55.62 | 26.98 | 65.92 | — | — | — | — | — | — | — | — | 11.26 | 6.61 | 6.84 | 8.81 | 12.40 | 14.08 | 11.59 | 25.29 |
Inventory turnover information is not provided.
Receivables turnover has been declining over the past quarters, indicating that Frontdoor Inc. is taking longer to collect payments from its customers.
Payables turnover has been relatively stable, suggesting that the company is managing its payments to suppliers consistently.
Working capital turnover has shown fluctuations, with a significant increase in Q3 2023 compared to the previous quarters, implying that Frontdoor Inc. is using its working capital more efficiently to generate revenue.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — | 11.07 | 9.74 | — | — | — | — | 13.84 | — | — | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | 1.23 | 1.46 | 1.28 | 1.31 | 1.10 | 0.88 | 1.33 | 1.12 | 1.60 | 1.15 | 1.17 | 0.97 | 1.24 | 2.52 | 2.32 | 2.10 | 2.94 | 2.17 | 2.50 |
| Number of days of payables | days | 30.99 | 35.24 | 30.98 | 31.77 | 30.67 | 33.98 | 38.98 | 31.61 | 29.49 | 34.50 | 36.86 | 30.46 | 26.52 | 34.41 | 38.15 | 29.01 | 25.47 | 29.44 | 31.04 |
Days of Inventory on hand (DOH) is not provided in the data provided, which limits our ability to analyze the efficiency of Frontdoor Inc.'s inventory management.
Days of Sales Outstanding (DSO) improved from 1.10 days in Q4 2022 to 1.23 days in Q4 2023, indicating that the company is collecting its accounts receivable more efficiently over time. However, a slight increase in DSO from Q3 to Q4 2023 should be monitored closely for potential changes in customer payment behaviors.
The Number of Days of Payables decreased from 33.98 days in Q3 2022 to 30.99 days in Q4 2023, suggesting that Frontdoor Inc. is taking longer to pay its suppliers. This may indicate improved cash flow management or renegotiated payment terms with suppliers. It is important to understand the reasons behind this change and its impact on relationships with suppliers.
Overall, Frontdoor Inc. has shown improvements in its accounts receivable collection efficiency and days of payables, which is positive for its working capital management. Monitoring these activity ratios over time will provide insights into the company's operational efficiency and financial health.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Total asset turnover | 1.63 | 1.50 | 1.51 | 1.49 | 1.54 | 1.52 | 1.53 | 1.53 | 1.50 | 1.37 | 1.37 | 1.11 | 1.05 | 1.03 | 1.04 | 1.08 | 1.09 | 1.11 | 1.12 |
Long-term activity ratios provide insight into how effectively a company is generating sales from its long-term assets. Frontdoor Inc.'s fixed asset turnover ratio has been gradually increasing over the past eight quarters, reaching a high of 29.67 in Q4 2023. This indicates that the company is generating $29.67 in sales for every dollar invested in fixed assets during the most recent quarter.
The trend suggests that Frontdoor Inc. is efficiently utilizing its fixed assets to generate revenue. Additionally, the company's fixed asset turnover consistently outperforms the total asset turnover ratio. This could indicate that the bulk of the company's sales are generated from its long-term assets, rather than its total assets.
Overall, the increasing trend in Frontdoor Inc.'s fixed asset turnover ratio reflects positively on the company's operational efficiency and ability to generate revenue from its long-term asset base.