Frontdoor Inc (FTDR)
Current ratio
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 363,000 | 429,000 | 391,000 | 381,000 | 330,000 | 343,000 | 310,000 | 282,000 | 295,000 | 385,000 | 356,000 | 573,000 | 626,000 | 624,000 | 577,000 | 510,000 | 461,000 | 489,000 | 448,000 | 369,000 |
| Total current liabilities | US$ in thousands | 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 | 364,000 | 373,000 | 396,000 | 374,000 |
| Current ratio | 1.10 | 1.18 | 1.07 | 0.96 | 0.91 | 0.88 | 0.77 | 0.70 | 0.78 | 0.98 | 0.84 | 1.31 | 1.55 | 1.51 | 1.39 | 1.28 | 1.27 | 1.31 | 1.13 | 0.99 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $363,000K ÷ $331,000K
= 1.10
Frontdoor Inc.'s current ratio has shown fluctuations over the past eight quarters. The current ratio measures the company's ability to meet its short-term obligations with its current assets. A ratio above 1 indicates that the company has more current assets than current liabilities.
In Q4 2023, the company's current ratio was 1.10, which improved from the previous quarter. This suggests that Frontdoor Inc. had sufficient current assets to cover its current liabilities by 1.10 times. It indicates a strengthening liquidity position compared to the prior quarter.
The current ratio peaked at 1.18 in Q3 2023, reflecting a temporary improvement in the company's liquidity position. However, the ratio decreased in Q2 2023 to 1.07, and further dropped significantly to 0.96 in Q1 2023. These lower ratios suggest a potential strain on the company's ability to cover its short-term obligations with its current assets during these periods.
Comparing the current ratios to the previous year, there has been a general upward trend, indicating an overall improvement in the company's liquidity position. Q4 2022 had a current ratio of 0.91, displaying a gradual increase in liquidity over the quarters.
The significant improvement seen in the current ratio from 0.70 in Q1 2022 to 1.10 in Q4 2023, points to potential enhancements in managing current assets and liabilities. However, investors and stakeholders should continue to monitor Frontdoor Inc.'s current ratio closely to ensure the company's ability to meet its short-term obligations effectively.
Peer comparison
Dec 31, 2023