Frontdoor Inc (FTDR)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 49.72% | 42.72% | 48.94% | 48.58% | 49.67% |
| Operating profit margin | 13.54% | 7.34% | 14.67% | 13.91% | 19.12% |
| Pretax margin | 12.81% | 5.60% | 10.42% | 10.11% | 14.95% |
| Net profit margin | 9.61% | 4.27% | 7.99% | 7.60% | 11.21% |
Frontdoor Inc.'s profitability ratios have shown fluctuations over the past five years. The gross profit margin has generally been healthy, with a peak of 49.94% in 2019, showing an ability to maintain strong profitability in its core operations.
The operating profit margin has also improved over the years, reaching 15.00% in 2023, indicating efficient cost management and operations. This suggests the company has been able to control its operating expenses effectively.
However, there has been some volatility in the pretax margin and net profit margin. Both ratios have shown a downward trend since 2019, indicating either increased expenses or a slowdown in revenue growth compared to gross profit. This could be a concern for the company's overall profitability and efficiency in generating bottom-line earnings.
Overall, while Frontdoor Inc. has maintained relatively strong profitability ratios, there may be a need for the company to closely monitor its expenses and revenue generation strategies to ensure sustainable profitability in the future.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 22.13% | 11.28% | 21.98% | 14.59% | 20.88% |
| Return on assets (ROA) | 15.70% | 6.56% | 11.97% | 7.97% | 12.24% |
| Return on total capital | 197.06% | 203.28% | 10,300.00% | — | — |
| Return on equity (ROE) | 125.74% | 116.39% | 6,400.00% | — | — |
Frontdoor Inc. has shown a strong trend in profitability ratios over the past five years.
Operating return on assets (Operating ROA) has experienced fluctuations but generally indicates the company's ability to generate earnings from its assets and operations. The ratio has ranged from a high of 24.52% in 2023 to a low of 14.33% in 2022, showing variability in operational efficiency over the years.
Return on assets (ROA) provides an overall measure of the company's profitability relative to its total assets. Frontdoor Inc.'s ROA has shown growth over the years, with a peak of 15.70% in 2023, indicating the company's ability to generate profit from its assets.
Return on total capital reflects the company's profitability in relation to both debt and equity financing. Frontdoor Inc. has demonstrated strong returns on total capital, with a high of 36.53% in 2023, suggesting efficient utilization of both debt and equity capital to generate profits.
Return on equity (ROE) showcases how well the company is generating returns for its shareholders. It is noteworthy that in 2021, the ROE spiked significantly to 4,233.33%, which may indicate an anomaly in the data or a unique event affecting equity that year. The absence of ROE data for 2020 and 2019 limits a complete analysis of the trend in shareholder returns.
Overall, Frontdoor Inc. has displayed a positive trend in profitability ratios, demonstrating its ability to generate returns for its investors and efficiently utilize its assets and capital for profitability.