Frontdoor Inc (FTDR)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 421,000 | 325,000 | 292,000 | 262,000 | 597,000 |
| Short-term investments | US$ in thousands | 15,000 | 5,000 | 6,000 | — | 0 |
| Total current liabilities | US$ in thousands | 369,000 | 331,000 | 364,000 | 378,000 | 403,000 |
| Cash ratio | 1.18 | 1.00 | 0.82 | 0.69 | 1.48 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($421,000K
+ $15,000K)
÷ $369,000K
= 1.18
The cash ratio of Frontdoor Inc has exhibited fluctuations over the years. As of December 31, 2020, the company had a healthy cash ratio of 1.48, implying that it held $1.48 in cash and cash equivalents for every dollar of current liabilities. However, by December 31, 2021, the cash ratio decreased to 0.69, indicating a decline in the company's ability to cover its short-term obligations solely with cash on hand.
Subsequently, by December 31, 2022, the cash ratio improved to 0.82, suggesting a slight enhancement in the company's liquidity position. The trend continued, with the cash ratio reaching 1.00 by December 31, 2023, indicating that Frontdoor Inc held just enough cash to cover its current liabilities.
By December 31, 2024, the cash ratio further increased to 1.18, reflecting an improvement in the company's ability to meet short-term obligations with its cash reserves. Overall, while the cash ratio of Frontdoor Inc experienced variability, the upward trend in recent years indicates a strengthening liquidity position, which is crucial for meeting short-term financial obligations.
Peer comparison
Dec 31, 2024