Frontdoor Inc (FTDR)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 51.65% | 47.64% | 40.67% | 46.75% | 46.27% |
| Operating profit margin | 19.37% | 15.00% | 9.27% | 14.98% | 14.59% |
| Pretax margin | 16.77% | 12.75% | 5.60% | 10.49% | 10.11% |
| Net profit margin | 12.75% | 9.61% | 4.27% | 7.99% | 7.60% |
Frontdoor Inc's profitability ratios exhibit fluctuations over the five-year period. The Gross Profit Margin improved from 46.27% in 2020 to 51.65% in 2024, indicating the company's ability to generate profits from its core operations.
Operating Profit Margin also displayed an upward trend, rising from 14.59% in 2020 to 19.37% in 2024, showcasing efficient management of operating expenses and higher profitability.
Pretax Margin increased significantly from 10.11% in 2020 to 16.77% in 2024, indicating effective cost management and enhanced overall profitability before tax considerations.
Net Profit Margin followed a similar positive trajectory, growing from 7.60% in 2020 to 12.75% in 2024, signifying the company's ability to optimize its bottom line and generate higher profits relative to its revenue.
Overall, the trend of improving profitability margins suggests that Frontdoor Inc has been effectively managing its resources and operations to increase profitability and create value for its stakeholders.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 16.94% | 24.52% | 14.23% | 22.45% | 15.30% |
| Return on assets (ROA) | 11.15% | 15.70% | 6.56% | 11.97% | 7.97% |
| Return on total capital | 149.37% | 200.00% | 195.08% | 6,566.67% | — |
| Return on equity (ROE) | 98.33% | 124.82% | 116.39% | 4,266.67% | — |
Frontdoor Inc's profitability ratios show a positive trend over the past years.
1. Operating return on assets (Operating ROA) increased from 15.30% in December 2020 to 24.52% in December 2023 before declining slightly to 16.94% in December 2024. This ratio indicates that the company's operating income generated from its assets has been improving, reflecting efficient asset utilization.
2. Return on assets (ROA) also demonstrated an upward trend, rising from 7.97% in December 2020 to 15.70% in December 2023. Despite a slight decrease to 11.15% in December 2024, the overall performance in generating profit from total assets has been positive.
3. Return on total capital started at an unreported figure in December 2020 but surged significantly to 195.08% in December 2022 before slightly increasing to 200.00% in December 2023. This ratio signifies impressive returns on the total capital employed by the company.
4. Return on equity (ROE) saw substantial growth, starting at an unreported figure in December 2020 and skyrocketing to 4,266.67% in December 2021. Thereafter, ROE moderated but remained strong at 98.33% in December 2024. This ratio demonstrates the company's ability to generate returns for its shareholders.
Overall, the profitability ratios indicate that Frontdoor Inc has been effectively utilizing its assets and capital to generate profits and create value for its shareholders, despite some fluctuations in performance over the years.