Frontdoor Inc (FTDR)
Cash conversion cycle
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — | — | — | — | — | 10.71 | 9.41 | — | — | — | — | 13.24 | — | — | — | — |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 10.71 | 9.41 | 0.00 | 0.00 | 0.00 | 0.00 | 13.24 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + — – —
= 0.00
Frontdoor Inc's cash conversion cycle has shown fluctuation over the years. In March 2021, the company had a cash conversion cycle of 13.24 days, indicating that it took approximately 13.24 days to convert its investments in inventory and other resources into cash inflows from sales. However, in subsequent periods, the company managed to optimize its operational efficiency as the cash conversion cycle reduced significantly or even reached zero days.
In June 2022, the cash conversion cycle slightly increased to 9.41 days, suggesting a temporary delay in the cash conversion process. This trend continued in September 2022, with a further increase to 10.71 days before returning to zero days in December 2022. The company maintained a zero-day cash conversion cycle in the following periods, indicating efficient management of its working capital.
Overall, Frontdoor Inc's ability to manage its cash conversion cycle efficiently is evident through the consistent reduction and optimization of this metric, reflecting effective working capital management and operational performance.
Peer comparison
Dec 31, 2024