Frontdoor Inc (FTDR)
Gross profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 952,000 | 848,000 | 676,000 | 749,000 | 682,000 |
| Revenue | US$ in thousands | 1,843,000 | 1,780,000 | 1,662,000 | 1,602,000 | 1,474,000 |
| Gross profit margin | 51.65% | 47.64% | 40.67% | 46.75% | 46.27% |
December 31, 2024 calculation
Gross profit margin = Gross profit ÷ Revenue
= $952,000K ÷ $1,843,000K
= 51.65%
Frontdoor Inc's gross profit margin has shown variability over the years based on the provided data. As of December 31, 2020, the gross profit margin stood at 46.27%, reflecting the company's ability to generate profits after accounting for the cost of goods sold. Subsequently, there was a slight improvement in the margin to 46.75% by December 31, 2021.
However, in the following years, there was a decline in the gross profit margin, dropping to 40.67% by December 31, 2022. This decrease could indicate potential challenges in controlling production or procurement costs relative to revenue.
Nonetheless, Frontdoor Inc managed to reverse this trend by December 31, 2023, achieving a higher gross profit margin of 47.64%. This recovery may suggest successful cost management strategies or improved pricing structures.
By December 31, 2024, the company's gross profit margin further improved to 51.65%, signaling a significant enhancement in profitability compared to previous years. This uptrend indicates that Frontdoor Inc has been able to effectively increase the margin between its revenue and cost of goods sold, potentially through operational efficiencies or pricing adjustments.
Overall, the analysis of Frontdoor Inc's gross profit margin highlights the company's dynamic performance in managing its profit generation capabilities over the specified period.
Peer comparison
Dec 31, 2024