Frontdoor Inc (FTDR)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,843,000 | 1,780,000 | 1,662,000 | 1,602,000 | 1,474,000 |
| Total current assets | US$ in thousands | 488,000 | 363,000 | 330,000 | 295,000 | 626,000 |
| Total current liabilities | US$ in thousands | 369,000 | 331,000 | 364,000 | 378,000 | 403,000 |
| Working capital turnover | 15.49 | 55.62 | — | — | 6.61 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,843,000K ÷ ($488,000K – $369,000K)
= 15.49
Frontdoor Inc's working capital turnover ratios indicate the efficiency of the company in managing its working capital to generate revenue. The ratio suggests how many times the company is able to convert its working capital into revenue over a specific period.
In December 31, 2020, Frontdoor Inc had a working capital turnover of 6.61, indicating that the company was able to convert its working capital into revenue approximately 6.61 times during that period.
For December 31, 2021, there is no data available, so we cannot provide a specific analysis for that year.
In December 31, 2022 again there is no data available, so no analysis can be provided for that year.
By December 31, 2023, the working capital turnover surged significantly to 55.62, signifying a substantial improvement in the company's ability to convert its working capital into revenue.
In December 31, 2024, the ratio decreased to 15.49, which is still a healthy level, showing that the company continues to efficiently utilize its working capital to generate revenue.
Overall, the trend suggests fluctuation in Frontdoor Inc's working capital turnover ratio, with a remarkable surge in 2023, indicating improved efficiency in managing working capital. The company should aim to sustain or enhance this efficiency in the future to support revenue generation.
Peer comparison
Dec 31, 2024