Frontdoor Inc (FTDR)
Quick ratio
| 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 | US$ in thousands | 421,000 | 375,000 | 419,000 | 378,000 | 325,000 | 320,000 | 344,000 | 337,000 | 292,000 | 244,000 | 269,000 | 255,000 | 262,000 | 309,000 | 323,000 | 538,000 | 597,000 | 551,000 | 545,000 | 482,000 |
| Short-term investments | US$ in thousands | 15,000 | — | 6,000 | 6,000 | 5,000 | 8,000 | 8,000 | 5,000 | 6,000 | 4,000 | — | — | — | — | — | — | 0 | 0 | 2,000 | 2,000 |
| Receivables | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 369,000 | 341,000 | 365,000 | 360,000 | 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 |
| 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 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($421,000K
+ $15,000K
+ $—K)
÷ $369,000K
= 1.18
The quick ratio of Frontdoor Inc, which measures the company's ability to meet short-term obligations with its most liquid assets, has fluctuated over the past few years.
From March 31, 2020, to December 31, 2021, the quick ratio generally improved, indicating a better ability to cover its current liabilities with its quick assets. However, starting from June 30, 2021, the quick ratio began to decrease significantly, reaching its lowest point of 0.63 on September 30, 2022. This decline may suggest potential liquidity challenges or difficulties in meeting short-term obligations.
Subsequently, there was a slight recovery in the quick ratio from December 31, 2022, to June 30, 2024, with values ranging between 0.63 and 1.18. The ratio improved in the last reported period, standing at 1.18 on December 31, 2024.
Overall, while the quick ratio of Frontdoor Inc has shown variability and some concerning declines in the past, the recent improvement indicates a better liquidity position as of December 31, 2024. Monitoring this ratio going forward will be crucial to assessing the company's ability to efficiently manage its short-term financial obligations.
Peer comparison
Dec 31, 2024