Frontdoor Inc (FTDR)
Net profit margin
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 171,000 | 171,000 | 128,000 | 91,000 | 71,000 | 69,000 | 117,000 | 124,000 | 127,000 | 122,000 | 95,000 | 104,000 | 112,000 | 130,000 | 142,000 | 153,000 | 153,000 | 151,000 | 139,000 |
| Revenue (ttm) | US$ in thousands | 1,780,000 | 1,754,000 | 1,714,000 | 1,678,000 | 1,662,000 | 1,661,000 | 1,648,000 | 1,623,000 | 1,601,000 | 1,585,000 | 1,554,000 | 1,509,000 | 1,474,000 | 1,451,000 | 1,418,000 | 1,389,000 | 1,366,000 | 1,345,000 | 1,315,000 |
| Net profit margin | 9.61% | 9.75% | 7.47% | 5.42% | 4.27% | 4.15% | 7.10% | 7.64% | 7.93% | 7.70% | 6.11% | 6.89% | 7.60% | 8.96% | 10.01% | 11.02% | 11.20% | 11.23% | 10.57% |
December 31, 2023 calculation
Net profit margin = Net income (ttm) ÷ Revenue (ttm)
= $171,000K ÷ $1,780,000K
= 9.61%
Frontdoor Inc.'s net profit margin has displayed fluctuating but generally positive trends over the past eight quarters. In Q4 2023, the net profit margin reached 9.61%, slightly lower than the Q3 2023 figure of 9.75%. Compared to the previous quarters, Q4 2023 shows significant improvement given the net profit margins were 7.47% in Q2 2023 and 5.42% in Q1 2023. The company's performance has been on an upward trajectory since Q1 2022, where the net profit margin was only 4.15%.
Q4 2022 saw a notable increase from the previous quarters, with a net profit margin of 4.27%. The performance in the latter half of 2022 was stronger than the first half, as evidenced by the net profit margin of 7.10% in Q2 2022 and 7.64% in Q1 2022.
Overall, the gradual and consistent improvement in Frontdoor Inc.'s net profit margin indicates the company's ability to generate more profits from its revenue over time. Management should continue to monitor and optimize operational efficiency to sustain and potentially further improve this positive trend.
Peer comparison
Dec 31, 2023