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