Frontdoor Inc (FTDR)
Working capital turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 1,842,000 | 1,826,000 | 1,810,000 | 1,791,000 | 1,780,000 | 1,754,000 | 1,714,000 | 1,678,000 | 1,662,000 | 1,662,000 | 1,649,000 | 1,624,000 | 1,602,000 | 1,585,000 | 1,554,000 | 1,509,000 | 1,474,000 | 1,451,000 | 1,418,000 | 1,389,000 |
| Total current assets | US$ in thousands | 488,000 | 484,000 | 463,000 | 412,000 | 363,000 | 429,000 | 391,000 | 381,000 | 330,000 | 343,000 | 310,000 | 282,000 | 295,000 | 385,000 | 356,000 | 573,000 | 626,000 | 624,000 | 577,000 | 510,000 |
| Total current liabilities | US$ in thousands | 369,000 | 341,000 | 365,000 | 360,000 | 331,000 | 364,000 | 365,000 | 396,000 | 364,000 | 391,000 | 404,000 | 402,000 | 378,000 | 394,000 | 424,000 | 439,000 | 403,000 | 412,000 | 416,000 | 398,000 |
| Working capital turnover | 15.48 | 12.77 | 18.47 | 34.44 | 55.62 | 26.98 | 65.92 | — | — | — | — | — | — | — | — | 11.26 | 6.61 | 6.84 | 8.81 | 12.40 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,842,000K ÷ ($488,000K – $369,000K)
= 15.48
The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate sales revenue. A higher ratio indicates better efficiency in managing working capital.
Frontdoor Inc's working capital turnover has fluctuated over the analyzed period. As of March 31, 2020, the ratio was 12.40, indicating that the company generated $12.40 in revenue for every $1 of working capital invested. This high ratio suggests efficient utilization of working capital.
Subsequently, the ratio decreased to 8.81 by June 30, 2020, and further declined to 6.84 by September 30, 2020, and 6.61 by December 31, 2020. These lower ratios may imply a less efficient management of working capital during these periods.
However, there was a significant improvement in the ratio by March 31, 2021, reaching 11.26, signaling a more effective use of working capital compared to the previous periods. During the following quarters, the data for June 30, 2021, and the subsequent periods are not available (denoted as "—"), limiting a detailed analysis for those specific dates.
The working capital turnover ratio spiked to 65.92 by June 30, 2023, indicating a substantial increase in efficiency in utilizing working capital for generating sales. This high ratio may suggest potential improvements in managing cash flow and inventory levels during that period.
Subsequently, the ratio declined to 34.44 by March 31, 2024, further dropping to 18.47 by June 30, 2024, followed by 12.77 by September 30, 2024, and 15.48 by December 31, 2024. These decreasing ratios may point towards potential challenges in efficiently utilizing working capital during those quarters.
Overall, fluctuations in Frontdoor Inc's working capital turnover ratio over the analyzed period indicate varying levels of efficiency in managing working capital to generate sales revenue. Further analysis and contextual information would be needed to understand the reasons behind these fluctuations and implications for the company's financial performance.
Peer comparison
Dec 31, 2024