Frontdoor Inc (FTDR)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 355,000 | 355,000 | 318,000 | 282,000 | 268,000 | 258,000 | 216,000 | 180,000 | 155,000 | 153,000 | 196,000 | 229,000 | 239,000 | 244,000 | 215,000 | 201,000 | 214,000 | 233,000 | 251,000 | 265,000 |
| Total assets | US$ in thousands | 2,107,000 | 1,217,000 | 1,200,000 | 1,146,000 | 1,089,000 | 1,168,000 | 1,136,000 | 1,128,000 | 1,082,000 | 1,095,000 | 1,076,000 | 1,058,000 | 1,069,000 | 1,161,000 | 1,135,000 | 1,355,000 | 1,405,000 | 1,407,000 | 1,361,000 | 1,291,000 |
| Operating ROA | 16.85% | 29.17% | 26.50% | 24.61% | 24.61% | 22.09% | 19.01% | 15.96% | 14.33% | 13.97% | 18.22% | 21.64% | 22.36% | 21.02% | 18.94% | 14.83% | 15.23% | 16.56% | 18.44% | 20.53% |
December 31, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $355,000K ÷ $2,107,000K
= 16.85%
Frontdoor Inc's operating return on assets (Operating ROA) fluctuated over the analyzed period, showing a general positive trend followed by a sudden decrease. The company's Operating ROA was 20.53% as of March 31, 2020, reflecting a strong performance in utilizing its assets to generate operating profits. Subsequently, it decreased to 18.44% by June 30, 2020, before further declining to 15.23% by December 31, 2020.
However, from March 31, 2021, Frontdoor Inc started to improve its Operating ROA, reaching 22.36% by December 31, 2021. The company continued to perform well into the following year, showing a slight decrease to 14.33% by December 31, 2022. From there, the trend reversed positively, with the operating return on assets increasing to 29.17% by September 30, 2024, signifying the company's enhanced ability to generate profits from its operating activities and assets.
Nevertheless, there was a notable decline in Operating ROA to 16.85% by December 31, 2024. It is essential for Frontdoor Inc to closely monitor and manage its efficiency in generating operating profits relative to its assets to sustain its profitability and create long-term value for its stakeholders.
Peer comparison
Dec 31, 2024