Frontdoor Inc (FTDR)

Working capital 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 current assets US$ in thousands 363,000 330,000 295,000 626,000 461,000
Total current liabilities US$ in thousands 331,000 364,000 378,000 403,000 364,000
Working capital turnover 55.62 6.61 14.07

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,780,000K ÷ ($363,000K – $331,000K)
= 55.62

The working capital turnover ratio for Frontdoor Inc. has shown fluctuations over the past five years, ranging from 6.61 to 55.62.

In 2019, the company had a working capital turnover of 13.93, indicating that it generated $13.93 in revenue for every $1 of working capital. This suggests that Frontdoor Inc. effectively utilized its working capital to generate sales.

The ratio was not available for 2020 and 2021, but based on the significant increase to 55.62 in 2023, it appears that the company experienced a substantial improvement in efficiency in utilizing its working capital to generate revenue.

A higher working capital turnover ratio signifies that the company is managing its working capital more efficiently, potentially by reducing excess inventory, collecting receivables faster, or extending payable periods.

This progression in the working capital turnover ratio could indicate improved operational efficiency and effective management of working capital by Frontdoor Inc. over the years, leading to a more optimal utilization of resources to drive revenue generation.


Peer comparison

Dec 31, 2023

Company name
Symbol
Working capital turnover
Frontdoor Inc
FTDR
55.62
ABM Industries Incorporated
ABM
16.26
Airbnb Inc
ABNB
1.51
Rollins Inc
ROL