Frontdoor Inc (FTDR)
Pretax margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 228,000 | 93,000 | 167,000 | 149,000 | 204,000 |
| Revenue | US$ in thousands | 1,780,000 | 1,662,000 | 1,602,000 | 1,474,000 | 1,365,000 |
| Pretax margin | 12.81% | 5.60% | 10.42% | 10.11% | 14.95% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $228,000K ÷ $1,780,000K
= 12.81%
The pretax margin of Frontdoor Inc. has shown fluctuating trends over the past five years. In 2019, the company displayed a higher pretax margin of 14.95%, reflecting strong profitability before accounting for taxes. Subsequently, there was a decline in 2020 to 10.11%, followed by a moderate increase in 2021 to 10.36%. Notably, there was a significant improvement in 2022, with the pretax margin rising to 5.66%. However, in 2023, there was a notable surge in profitability, with the pretax margin hitting 12.75%.
The varying pretax margin percentages indicate fluctuations in Frontdoor Inc.'s ability to control operating expenses and generate profits before tax expenses. A higher pretax margin suggests that the company is more efficient in managing costs relative to its revenue, while a lower pretax margin may indicate challenges in maintaining profitability levels. It is essential for investors and stakeholders to monitor these trends closely to assess the financial health and performance of Frontdoor Inc.
Peer comparison
Dec 31, 2023