Frontdoor Inc (FTDR)
Receivables 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 |
| Receivables | US$ in thousands | 6,000 | 7,000 | 6,000 | 6,000 | 5,000 | 4,000 | 6,000 | 5,000 | 7,000 | 5,000 | 5,000 | 4,000 | 5,000 | 10,000 | 9,000 | 8,000 | 11,000 | 8,000 | 9,000 |
| 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 |
December 31, 2023 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $1,780,000K ÷ $6,000K
= 296.67
To analyze Frontdoor Inc.'s receivables turnover, we calculate the average receivables turnover ratio over the eight quarters provided. The average receivables turnover ratio for Frontdoor Inc. is 298.32.
The receivables turnover ratio measures how efficiently a company is able to collect its outstanding receivables during a specific period. A higher ratio indicates that the company is collecting its receivables more quickly, which can be seen as a positive indicator of efficient management of accounts receivable.
Frontdoor Inc.'s receivables turnover has fluctuated over the quarters, with a high of 415.25 in Q3 2022 and a low of 250.57 in Q3 2023. Despite these fluctuations, the average ratio of 298.32 over the period indicates a generally strong ability to collect outstanding receivables efficiently.
Investors and analysts may view a consistent or increasing receivables turnover ratio positively, as it suggests that the company is effectively managing its accounts receivable and converting them into cash. However, significant fluctuations in the ratio could indicate issues with collecting receivables or changes in the company's credit policies.
Peer comparison
Dec 31, 2023