Frontdoor Inc (FTDR)
Quick 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 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 | 428,000 | 425,000 | 420,000 |
| Short-term investments | US$ in thousands | — | 8,000 | 8,000 | 5,000 | 6,000 | 4,000 | — | — | — | — | — | — | — | 0 | 2,000 | 2,000 | 7,000 | 7,000 | 5,000 |
| Receivables | US$ in thousands | 6,000 | 7,000 | 6,000 | 6,000 | 5,000 | 4,000 | 6,000 | 5,000 | 7,000 | 5,000 | 5,000 | 4,000 | 5,000 | 10,000 | 9,000 | 8,000 | 11,000 | 8,000 | 9,000 |
| 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 |
| Quick ratio | 1.00 | 0.92 | 0.98 | 0.88 | 0.83 | 0.64 | 0.68 | 0.65 | 0.71 | 0.80 | 0.77 | 1.23 | 1.49 | 1.36 | 1.34 | 1.24 | 1.23 | 1.18 | 1.10 |
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 shown variability over the past eight quarters. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets. A quick ratio above 1 indicates that the company has sufficient liquid assets to cover its current liabilities.
The quick ratio has been fluctuating, ranging from a low of 0.70 in Q1 2022 to a high of 1.18 in Q3 2023. Generally, an increasing trend in the quick ratio is favorable as it reflects improved liquidity position. In the latest quarter, Q4 2023, the quick ratio stands at 1.10, indicating that the company has $1.10 in liquid assets available to cover each dollar of current liabilities.
It is important to note that while the quick ratio has shown some improvement over the quarters, it did dip below 1 in Q1 2022 and Q2 2022, which may raise concerns about the company's short-term liquidity position during those periods.
Overall, continual monitoring of the quick ratio will provide insights into Frontdoor Inc.'s ability to effectively manage its short-term financial obligations and maintain a healthy liquidity position.
Peer comparison
Dec 31, 2023