Frontdoor Inc (FTDR)
Net profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 171,000 | 71,000 | 128,000 | 112,000 | 153,000 |
| Revenue | US$ in thousands | 1,780,000 | 1,662,000 | 1,602,000 | 1,474,000 | 1,365,000 |
| Net profit margin | 9.61% | 4.27% | 7.99% | 7.60% | 11.21% |
December 31, 2023 calculation
Net profit margin = Net income ÷ Revenue
= $171,000K ÷ $1,780,000K
= 9.61%
The net profit margin for Frontdoor Inc. has fluctuated over the past five years, with values ranging from 4.27% to 11.28%. In 2023, the net profit margin improved significantly to 9.61% compared to the previous year. This indicates that for every dollar of revenue generated by the company in 2023, 9.61 cents were retained as profit after accounting for all expenses.
Despite the improvement in 2023, the company's net profit margin remains below the peak level observed in 2019. This suggests that Frontdoor Inc. may have experienced challenges in maintaining profitability in the intervening years. It would be important to further analyze the factors contributing to these fluctuations in net profit margin to assess the company's operational efficiency and profitability sustainability.
Peer comparison
Dec 31, 2023