Frontdoor Inc (FTDR)
Total asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,780,000 | 1,662,000 | 1,602,000 | 1,474,000 | 1,365,000 |
| Total assets | US$ in thousands | 1,089,000 | 1,082,000 | 1,069,000 | 1,405,000 | 1,250,000 |
| Total asset turnover | 1.63 | 1.54 | 1.50 | 1.05 | 1.09 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $1,780,000K ÷ $1,089,000K
= 1.63
The total asset turnover ratio for Frontdoor Inc. has shown an improving trend over the past five years. It increased from 1.09 in 2019 to 1.63 in 2023, indicating that the company generated $1.63 in revenue for each dollar of assets it held at the end of the most recent fiscal year.
This improvement suggests that Frontdoor Inc. has become more efficient in utilizing its assets to generate sales over the years. A higher total asset turnover ratio generally indicates better operational efficiency and effectiveness in using the company's assets to drive revenue growth.
The steady increase in total asset turnover ratio could be a positive signal for investors and stakeholders as it shows that the company has been able to increase sales relative to its total assets, potentially leading to improved profitability and overall financial performance. Continued monitoring of this ratio will be important to assess the company's ability to sustain or further improve its asset utilization efficiency in the future.
Peer comparison
Dec 31, 2023