Frontdoor Inc (FTDR)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.32 | 1.42 | 1.27 | 1.14 | 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 |
| Quick 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 |
| 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 |
Frontdoor Inc's liquidity ratios show fluctuations over the years. The current ratio, which measures the company's ability to cover short-term liabilities with its current assets, has generally been above 1, indicating that the company has sufficient current assets to cover its short-term obligations. However, there was a notable decline in the current ratio in mid-2021, dropping to as low as 0.70 by March 31, 2022, before gradually recovering to 1.32 by December 31, 2024.
The quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, followed a similar trend as the current ratio. It also experienced a significant decline in mid-2021, reaching a low of 0.63 by March 31, 2022, but improved to 1.18 by December 31, 2024.
The cash ratio, which is the most conservative liquidity ratio as it only considers cash and cash equivalents to cover current liabilities, showed a similar trend to the quick ratio and current ratio. It hit a low of 0.63 on March 31, 2022, before climbing back to 1.18 by December 31, 2024.
Overall, while Frontdoor Inc's liquidity ratios fluctuated over the years, indicating varying levels of short-term liquidity, the company managed to improve its liquidity position towards the end of the analyzed period. Investors and stakeholders may want to monitor these ratios closely to ensure the company maintains a healthy liquidity position.
Additional liquidity measure
| 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 conversion cycle | days | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 10.71 | 9.41 | 0.00 | 0.00 | 0.00 | 0.00 | 13.24 | 0.00 | 0.00 | 0.00 | 0.00 |
Frontdoor Inc's cash conversion cycle has shown fluctuations over the years. The cycle measures the time it takes for the company to convert its investments in inventory and other resources into cash flow from sales.
In March 2021, the cash conversion cycle was 13.24 days, indicating that the company took longer to convert its investments into cash during that period. However, in subsequent quarters, the company managed to significantly improve its efficiency, with the cycle dropping to 0.00 days in the following quarters.
Furthermore, in June 2022 and September 2022, the cash conversion cycle increased slightly to 9.41 days and 10.71 days, respectively, but remained relatively low compared to the peak in March 2021. The company's ability to efficiently manage its inventory and cash flows improved during these quarters.
Overall, Frontdoor Inc's cash conversion cycle data suggests that the company has made efforts to streamline its operations and improve its working capital management, leading to shorter cash conversion cycles and ultimately enhancing its liquidity position.