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