Frontdoor Inc (FTDR)

Cash ratio

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
Cash and cash equivalents US$ in thousands 421,000 375,000 419,000 378,000 325,000 320,000 344,000 337,000 292,000 244,000 269,000 255,000 262,000 309,000 323,000 538,000 597,000 551,000 545,000 482,000
Short-term investments US$ in thousands 15,000 6,000 6,000 5,000 8,000 8,000 5,000 6,000 4,000 0 0 2,000 2,000
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
Cash ratio 1.18 1.10 1.16 1.07 1.00 0.90 0.96 0.86 0.82 0.63 0.67 0.63 0.69 0.78 0.76 1.23 1.48 1.34 1.31 1.22

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 provides insight into the company's ability to cover its short-term obligations with its available cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term liabilities.

From March 31, 2020 to December 31, 2020, the cash ratio gradually increased from 1.22 to 1.48, suggesting an improvement in Frontdoor Inc's liquidity position. However, there was a noticeable decline in the ratio in the following quarters, reaching a low of 0.63 by September 30, 2022. This could indicate potential liquidity challenges or increased usage of cash for other purposes.

Over the next few quarters, the cash ratio fluctuated between 0.63 and 1.18, showing some variability in the company's ability to cover its short-term obligations with cash on hand. It peaked at 1.18 by December 31, 2024, indicating a partial recovery in liquidity compared to the lower ratios observed earlier.

Overall, the trend in Frontdoor Inc's cash ratio suggests fluctuations in its liquidity position over the analyzed period, with periods of both strength and potential weakness. It is important for investors and stakeholders to monitor these ratios to assess the company's ability to meet its short-term financial obligations effectively.


Peer comparison

Dec 31, 2024