Frontdoor Inc (FTDR)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 363,000 | 330,000 | 295,000 | 626,000 | 461,000 |
| Total current liabilities | US$ in thousands | 331,000 | 364,000 | 378,000 | 403,000 | 364,000 |
| Current ratio | 1.10 | 0.91 | 0.78 | 1.55 | 1.27 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $363,000K ÷ $331,000K
= 1.10
The current ratio of Frontdoor Inc. has fluctuated over the past five years. In 2023, the current ratio stands at 1.10, indicating that the company's current assets are 1.10 times its current liabilities, reflecting an improvement from the previous year. However, looking at the trend over the five-year period, the company experienced a decreasing trend in its current ratio from 2019 to 2021, possibly signaling potential liquidity concerns or an inadequate ability to meet short-term obligations during those years.
The current ratio rebounded significantly in 2022 and 2023, surpassing the 1.0 threshold, which is generally considered a healthy sign as it suggests that the company has enough current assets to cover its current liabilities. This improvement could be attributed to better management of current assets or a reduction in current liabilities relative to the previous years.
While the current ratio is just one metric and should be considered alongside other financial ratios and qualitative factors in a comprehensive analysis of the company's financial health, the recent upward trend in Frontdoor Inc.'s current ratio is a positive development that may indicate improved liquidity and short-term financial stability.
Peer comparison
Dec 31, 2023