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