Frontdoor Inc (FTDR)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 488,000 | 363,000 | 330,000 | 295,000 | 626,000 |
| Total current liabilities | US$ in thousands | 369,000 | 331,000 | 364,000 | 378,000 | 403,000 |
| Current ratio | 1.32 | 1.10 | 0.91 | 0.78 | 1.55 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $488,000K ÷ $369,000K
= 1.32
Frontdoor Inc's current ratio has exhibited fluctuation over the past five years. The ratio, which measures the company's ability to meet its short-term obligations with its current assets, stood at 1.55 on December 31, 2020, indicating a healthy liquidity position. However, there was a notable decrease in the current ratio to 0.78 by December 31, 2021, suggesting potential liquidity concerns.
In the subsequent years, Frontdoor Inc experienced some improvement in its current ratio, which increased to 0.91 by December 31, 2022, and further to 1.10 by December 31, 2023. These increments may suggest a more efficient management of current assets and liabilities, leading to a better liquidity position.
By the end of December 31, 2024, Frontdoor Inc's current ratio rose to 1.32, indicating a stronger ability to cover short-term obligations with current assets. Overall, the company's current ratio has shown variability over the years, reflecting changes in its liquidity management and the ability to meet short-term obligations.
Peer comparison
Dec 31, 2024