Frontdoor Inc (FTDR)
Total asset 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 |
| Total assets | US$ in thousands | 1,089,000 | 1,168,000 | 1,136,000 | 1,128,000 | 1,082,000 | 1,095,000 | 1,076,000 | 1,058,000 | 1,069,000 | 1,161,000 | 1,135,000 | 1,355,000 | 1,405,000 | 1,407,000 | 1,361,000 | 1,291,000 | 1,250,000 | 1,217,000 | 1,179,000 |
| 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 |
December 31, 2023 calculation
Total asset turnover = Revenue (ttm) ÷ Total assets
= $1,780,000K ÷ $1,089,000K
= 1.63
Total asset turnover measures how effectively a company generates revenue in relation to its total assets. In the case of Frontdoor Inc., the total asset turnover ratio has shown some fluctuations over the past eight quarters, ranging from a low of 1.49 to a high of 1.63. Generally, a higher total asset turnover indicates that the company is more efficient in utilizing its assets to generate revenue.
Frontdoor Inc.'s total asset turnover ratio has been relatively stable, with most values clustering around the range of 1.50 to 1.54. This suggests that the company has been able to maintain a consistent level of asset utilization efficiency over the analyzed period. However, the recent peak at 1.63 in Q4 2023 indicates a notable improvement in asset efficiency, potentially pointing towards better revenue generation from the existing asset base.
Overall, Frontdoor Inc.'s total asset turnover ratios imply a reasonable level of asset utilization efficiency, with the company effectively generating revenue from its total assets. Continued monitoring of this ratio will be important to assess any trends or deviations in the company's ability to optimize asset utilization for revenue generation.
Peer comparison
Dec 31, 2023