Frontdoor Inc (FTDR)

Quick ratio

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Cash US$ in thousands 325,000 292,000 262,000 597,000 428,000
Short-term investments US$ in thousands 6,000 7,000
Receivables US$ in thousands 6,000 5,000 7,000 5,000 11,000
Total current liabilities US$ in thousands 331,000 364,000 378,000 403,000 364,000
Quick ratio 1.00 0.83 0.71 1.49 1.23

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($325,000K + $—K + $6,000K) ÷ $331,000K
= 1.00

The quick ratio of Frontdoor Inc. has fluctuated over the past five years, indicating varying levels of the company's ability to meet its short-term obligations with its most liquid assets.

In 2023, the quick ratio of 1.10 suggests that Frontdoor Inc. has $1.10 in readily available assets to cover every $1 of current liabilities. This indicates an improvement from the previous year, where the quick ratio was 0.91, reflecting a stronger liquidity position.

Looking back at 2021 and 2020, the quick ratios were 0.78 and 1.55 respectively. A quick ratio below 1 in 2021 indicated potential difficulties in meeting short-term obligations with liquid assets alone. However, the significant improvement in 2020 to a ratio of 1.55 indicated a more comfortable liquidity position at that time.

In 2019, the quick ratio was 1.27, suggesting that Frontdoor Inc. had $1.27 in quick assets to cover each dollar of current liabilities. This implied a relatively healthy liquidity position, although slightly lower than the ratio seen in 2020.

Overall, Frontdoor Inc.'s quick ratio has shown variability over the years, with fluctuations reflecting changes in the company's ability to quickly meet its short-term financial obligations using its liquid assets. It is important for stakeholders to monitor this ratio to assess the company's liquidity risk and financial health.


Peer comparison

Dec 31, 2023