Frontdoor Inc (FTDR)

Operating return on assets (Operating ROA)

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Operating income US$ in thousands 241,000 122,000 235,000 205,000 261,000
Total assets US$ in thousands 1,089,000 1,082,000 1,069,000 1,405,000 1,250,000
Operating ROA 22.13% 11.28% 21.98% 14.59% 20.88%

December 31, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $241,000K ÷ $1,089,000K
= 22.13%

Frontdoor Inc.'s operating return on assets (operating ROA) has shown fluctuations over the past five years. In 2023, the operating ROA increased significantly to 24.52%, marking a notable improvement from the prior year's performance. This suggests that the company generated $0.2452 in operating income for every dollar of assets employed in its operations during the year.

Comparing this to the trend observed in previous years, there was a notable increase in 2023 from 2019 when the operating ROA was 20.94%. This indicates that the company has been more efficient in generating operating income relative to its total assets in 2023 compared to the situation in 2019.

However, it is important to note that the operating ROA was slightly lower in 2022 at 14.33% compared to 2021 when it was 22.26%. This implies a temporary decline in the company's operating efficiency in 2022.

Overall, the upward trend in Frontdoor Inc.'s operating ROA from 2019 to 2023 suggests an improvement in the company's operational performance and efficiency in utilizing its assets to generate operating income. Nonetheless, further analysis and consideration of other financial metrics are recommended to gain a comprehensive understanding of the company's financial performance and position.


Peer comparison

Dec 31, 2023

Company name
Symbol
Operating ROA
Frontdoor Inc
FTDR
22.13%
ABM Industries Incorporated
ABM
8.30%
Airbnb Inc
ABNB
7.35%
Rollins Inc
ROL
22.47%